Yorkshire cuts mortgage rates by 0.5%

Yorkshire Building Society (YBS) has cut mortgage rates on some of its most popular products by as much as 0.5 per cent, with immediate effect.

A two-year fixed-rate deal with the lender is now priced at 6.19 per cent, with fees of £1,190. A no fee two-year deal is also available at 6.79 per cent.

Both these deals appear competitive, significantly below the average fixed-rate mortgage cost of 6.96 per cent reported earlier this week by MoneyFacts.co.uk.

"In the present climate with soaring petrol, utility and food costs, a number of borrowers are looking for the lowest possible monthly mortgage payments to help them survive financially," explained Tom Girling, Yorkshire's product manager for mortgages.

YBS is also launching a new 4.99 per cent two-year fixed-rate mortgage with a three per cent fee. Of this fee, 2.75 per cent can be added to the loan, even if the maximum 75 per cent loan to value (LTV) has been borrowed.

The new deal, with a minimum loan value of £75,000, has been designed to help borrowers who want to fix their mortgage payments as low as possible to help them manage their monthly budgets. However, fees are likely to be around £4,500.

"The new 4.99 per cent two year fixed-rate deal is the lowest rate currently available and, while the fee is inevitably high, this can be added to the loan which keeps the pay rate down," added Mr Girling.

"The mortgage also offers an overpayment option should borrowers find themselves able to increase their monthly payments and therefore repay the fee in a shorter time than the full remaining mortgage term."

Chris O'Toole