Reductions of between 0.2% and 1.16% have been made by the mutual, with its five-year fix (75% loan to value LTV) priced at 4.94%.

This is down from 5.34% but it comes with a hefty £1,495 completion fee. 

Its two-year tracker mortgage has a rate of 3.29%, down from 4.15%. This has a lesser £995 completion fee and is also available at 75% LTV. 

Ben Merritt, director of mortgages at Yorkshire Building Society, said: “We’re acutely conscious that people are feeling the squeeze from a variety of directions at the moment, with the rising cost of living and, more recently, the increasing interest rate environment prompted by the Bank of England’s decision to make successive changes to its base rate to try to control inflation. 

“With market rates starting to show signs of settling a little lower than their recent peak, we decided there is a perfect opportunity for us to offer our borrowers even better value.” 

He added: “As a mutual building society, we were established to help borrowers overcome challenges and we hope this extensive set of rate reductions will go some way towards easing the strain for people looking to buy or remortgage their home at the present time.” 

YBS joins Platform, part of the Co-Operative Bank, in re-pricing deals at sub 5%. Last week our sister title, Mortgage Solutions reported it had brought back a range of new business and switch deals across mainstream, buy-to-let, Help to Buy and professional mortgage ranges.

Current house purchase and remortgage deals include 4.94% on a five-year deal (60% LTV) with a £999 fee or 4.89% though with a £1,499 fee. A lower 4.84% five-year mortgage deal is available (60% LTV) but it comes with a £1,999 fee. For those with 75% equity, you can gain a five-year deal at 4.89%, with a £1,999 fee.

Rate rollercoaster

According to Moneyfacts data, the average two-year fixed rate deal stood at 2.29% in November 2021, while the five-year was recorded at 2.59%. However, since September and in the aftermath of the disastrous mini Budget, rates have been rising at pace, peaking at 6.65% on 20 October for an average two-year deal, while the five-year equivalent peaked at 6.51% on the same day.

Rates have started to come down following a range of fiscal and monetary policies and interventions, while stability has entered the market in the form of Rishi Sunak as new Prime Minister.

Moneyfacts data revealed that as of today, the average two-year and five-year deal now stand at 6.21% and 6.01% respectively. Meanwhile, the average two-year tracker is priced at 4.29%

Related: Beat expensive fixed rate mortgages with these three alternatives and Could mortgage porting work for you at a time of higher fixed rates?