The Yorkshire Building Society has announced that it is to cut some mortgage rates for borrowers with small deposits.
It is now offering a two-year fixed rate mortgage for borrowers with a loan-to-value (LTV) ratio of 90 per cent at 4.24 per cent. If you have an LTV of 75 per cent, then the rate is just 2.64 per cent. Both mortgage products come with a £995 fee.
Meanwhile, its five-year fixed rate mortgage deal for first-time buyers with a ten per cent deposit is 4.79 per cent. For borrowers with a 25 per cent deposit the rate is 3.29 per cent. Again, both products come with a £995 fee.
Offset alternatives are available across the Yorkshire Building Society’s product range priced at 0.20 per cent more than the non-offset equivalents.
Chris Smith, Yorkshire Building Society’s Direct Mortgage Manager, said: “We have seen other lenders cut rates recently, however many of these reductions have been at the 60% LTV level.
“The sizeable deposit required, together with the very large fees involved, means they are not suitable for the majority of borrowers.
“The reductions we are making will benefit those with lower deposits and are likely to appeal to a wider range of customers.”