Yorkshire BS cut mortgage rates for borrowers with small deposits

The Yorkshire Building Society has announced mortgage rate cuts for borrowers with small deposits or low levels of equity.

It has reduced rates by up to 0.25 per cent on mortgages available for homeowners with a deposit of just ten per cent.

It means that its two-year fixed rate mortgage charges 4.39 per cent, its three-year fixed rate mortgage charges 4.79 per cent and its five-year fix comes in at 4.94 per cent. All of these products have a fee of £995.

For borrowers with a 25 per cent deposit, other rate reductions include a two-year fixed rate mortgage at 2.79 per cent and a two-year tracker mortgage at 2.74 per cent with a £995 fee.

Other options include £500 cashback products and different fees, rates and term options are available.

Sunjeev Sahota from Yorkshire Building Society said: "We are committed to offering competitive deals across our mortgage range and we recognise the challenge faced by those with smaller deposits - that's why we have focused on our 90% LTV tier as we believe this will help more people get on the property ladder.“