Yorkshire Building Society made a big announcement this week, having now launched the lowest 2-year fixed rate mortgage currently on the market, with a rate of 1.14% up to 65% loan to value (LTV). Available to borrowers with a 35% deposit, the mortgage comes with a £1,345 product fee and can also be taken as an equivalent offset mortgage at a rate of just 1.34%.
Following a number of previous changes to the processes and criteria across the building society’s intermediary arm in recent weeks, the lender seems to have now established its competitive position in the space with this market-leading rate. For example, in April, Yorkshire Building Society also lowered its minimum property valuation for buy to lets from £100,000 to £75,000, as well as expanding criteria allowing mortgages on ex-local authority homes.
Elsewhere in the market, Mansfield Building Society has similarly revealed a 2.16% discount on 3 year fixed rates up to 70% LTV. Available for both purchase and remortgage, this comes with a rate of 3.43%, as well as allowing for overpayments with a 10% limit. This comes with an arrangement fee of £625 that can be added to the loan, and an additional £199 booking fee.
Many lenders have continued to launch some of the lowest fixed rates seen on the market such as this, with Barclays, for example, also reducing rates on 2 and 5 year fixed rates. 2 year fixes are now available from 1.39% at 60% LTV, 1.69% up to 75% LTV and 1.77% at 80% LTV, while other 5 year fixes from the lender were also reduced to 2.19% and 2.45% at 60% and 70% LTV, respectively.
Yorkshire Building Society’s latest 2 year fixed rate mortgage has just beaten the previously considered lowest 2-year fix on the market, however, which was at 1.39%. This also follows recent reports that the average 2-year fix at 90% LTV has now fallen to just 3%, whereas the average rate of a 2-year fix at 65% LTV now stands at 2.03%.