It is our job to scour the market for the best mortgage rates and offers available for our clients, and with that, we often come across gems many others may not be aware of – sometimes from the most unlikely of lenders.
Nationwide recently launched a 2 year fixed rate mortgage, fixed at 1.99% and available up to 80% loan to value (LTV), which came with the ability to overpay by 10% each year with free valuation and legal fees included. Even more impressively, this was available exclusively to customers remortgaging.
In line with this, HSBC also had tongues wagging this week, with the announcement of the first sub-1% fixed rate on record. However, we have some reservations about this, all of which you can read about in more detail in our feature in City AM.
It was, therefore a close call trying to decide our top recommended product for this, especially as so many lenders continue to pull out further reductions from the bag. Yet our chosen product for this week goes to a slightly smaller lender – Yorkshire Building Society – who has now released a record low first time buyer rate of just 1.98%.
Available up to 90% LTV for a 2 year fixed term, this is currently the lowest first time buyer rate available on the market. Borrowers with just a 10% deposit can also benefit from a 5 year fixed rate with the lender at just 2.93% – both with a £1,345 product fee, or a 2.59% rate up to 90% LTV with no product fee, free standard valuation and legal work for remortgages, or £250 cashback on completions for new purchases.
It is common knowledge how difficult it can be to reach the first foot of the property ladder, and this extremely low and competitive fixed rate is likely to help support more young people toward achieving their goal of being a homeowner.