Yorkshire launches lowest-ever rate of 0.89%

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Yorkshire Building Society has launched the lowest-ever UK mortgage rate of 0.89 per cent.

The two-year discounted standard variable rate mortgage is available from today up to 65 per cent LTV.

It has a product fee of £1,495. An alternative £995 fee option is available at 1.05 per cent.

The previous lowest rate was 0.98 per cent, for the same product from Yorkshire.

The 0.98 rate was also available until October 2016 as a discounted variable loan from Monmouthshire Building Society.

The building society is also continuing to offer the cheapest fixed rate mortgage at 0.99 per cent for loans up to 60 per cent LTV.

The new 0.89 per cent loan matches the Yorkshire’s SVR at a discounted level of 3.85 per cent for two years before reverting to the SVR itself, which is currently 4.74 per cent.

The rate is collared at 0 per cent.

Yorkshire Building Society senior mortgage manager James Farrow says: “We are very pleased to offer borrowers the lowest mortgage rate ever available.

“The cost of funding has fallen in recent weeks and as a financially strong building society with no external shareholders to satisfy we have the ability to pass this on to borrowers.”

Moneyfacts finance expert Rachel Springall says: “It’s fantastic to see such low rates on offer from Yorkshire Building Society and the choice between variable or fixed deal will appeal to different types of borrowers.

“Those looking for more flexibility over the shorter term may prefer a discounted deal, but those looking for some security could choose the fixed rate.”