Yorkshire Building Society has launched a 0.98% two-year discounted standard variable rate mortgage – its lowest ever rate.
Available to buyers and borrowers looking to remortgage, the 65% loan-to-value variable mortgage tracks the Yorkshire’s Standard Variable Rate, currently at 4.74%, at a discounted rate of 3.76%. It has a £1,495 product fee.
The mortgage has an interest rate collar of 0.00% allowing the customer to benefit from reductions to the lender’s SVR until their interest rate payable reaches the collar. After the initial term the mortgage rates will revert to Yorkshire’s standard variable rate.
Brendan Gilligan, product manager at Yorkshire Building Society, said: “We’re really proud to launch this market-leading rate – it’s the lowest mortgage rate we’ve ever had.
“It will appeal to customers who are keeping an eye on interest rates because as well as being the lowest rate available from any provider, it also have the potential to reduce further if the Bank Rate drops.”
Rachel Springnall, finance expert from Moneyfacts, said: “This new two-year discounted rate from Yorkshire Building Society offers the lowest rate on the market for borrowers looking to remortgage and joint lowest for purchase customers, and is likely to delight those hoping to take advantage of a low rate with a trusted brand.”
The mortgage is designed to give borrowers flexibility as they can redeem their mortgage at any time during the discounted period and will only incur a 1% early repayment charge, which is lower than that of the Yorkshires typical fixed rate ERCs.
The home loan is portable, meaning customers can transfer their mortgage to a new property without charge.
