Yorkshire Building Society cuts fixed-rates

Yorkshire Building Society (YBS) has announced it will cut the cost of fixed-rate borrowing, with effect from today.

A new two-year fixed-rate mortgage with an interest rate of 5.29 per cent will be launched, combined with a £975 fee and a 75 per cent loan-to-value ratio (LTV).

The deal is available for both home purchase and remortgage, but carries a three per cent early repayment fee during both years.

Equivalent three and five-year deals will also be on offer, both carrying rates of 5.49 per cent, fees of £975 and maximum loan-to-value ratios of 75 per cent.

However, while the three-year deal carries an early repayment fee of three per cent for the duration of the deal, this increases to five per cent for those taking the five-year option.

This latest drop in rates from the Yorkshire means that its two-year fixed-rate has come down by 90 basis points from 6.19 per cent on the 24th July.

"Money market rates are continuing to ease so we are keen to pass on the benefit to home buyers and those looking for a new mortgage deal," said Tom Girling, mortgage product manager at the YBS.

"The combination of falling rates together with the stamp duty holiday announced on Tuesday may encourage those buyers committed to buying a home to take that first step."

The government announced earlier this week the stamp duty threshold was to be increased to £175,000 for the next year.

Chris O'Toole