Yorkshire Building Society (YBS) is reducing selected fixed rate mortgage deals by up to 0.65 percentage points. A particularly attractive offer from YBS is a five-year fixed rate mortgage for both purchase and remortgage, now standing at 3.99%. This deal is tailored for borrowers who can provide 25% equity or a cash deposit for purchases. However, it’s important to note that this offer comes with a £1,495 fee.

In addition to the five-year deal, YBS is also introducing a two-year fixed rate at 4.49%, available for home purchase or remortgage. For those seeking more affordability, YBS presents a fee-free two-year fix at 5.14% for borrowers with 20% equity or deposit and a similar five-year deal at 4.79% for those with a 10% cash deposit.

Aidan Smith, YBS’s mortgage product manager, attributes these competitive rates to the recent positive market response to the unexpected fall in inflation. He emphasises YBS’s commitment to delivering value to borrowers, including offering sub-4% products.

Virgin Money Enters the Fray

Not to be outdone, Virgin Money has also revised their mortgage offerings, marking their second rate reduction in a week. These new rates, available through brokers, have seen cuts of up to 0.8 percentage points.

Virgin Money’s highlight is a two-year fixed rate remortgage deal at 4.24%, though it comes with a significant 1% fee. This offer demands at least 40% equity from homeowners. For those with 30% equity, the rate is slightly higher at 4.39%.

Additionally, Virgin Money has reduced two and five-year fixed rates for home purchase, starting from 4.47% and 3.92% respectively, both carrying a £1,295 fee. Existing Virgin customers seeking a new mortgage deal (product transfer) will find five-year fixed rates starting from 3.88% with a £1,495 fee (65% LTV).

How These Offers Compare

For perspective, the current market-leading five-year deal for remortgage, available to new customers, is from Santander at 3.89% with a £999 fee. This comparison underscores the highly competitive nature of the current mortgage market, presenting an array of options for borrowers.