More sub-4% mortgage rates as Yorkshire Building Society follows HSBC and Virgin Money
The mortgage rate war is heating up as another lender releases a sub-4% mortgage deal.
Yorkshire Building Society has reduced the pricing on its five-year fixed mortgage up to 75 per cent loan to value (LTV) by 0.25%, bringing it to 3.98%.
This is the first sub-4% mortgage available through the mutual since September.
The product is available for remortgage and has a £1,495 fee. It offers the incentives of a free standard valuation and remortgage legal services.
At the same time, YBS launched a series of other mortgage products. Its house purchase mortgage now has a rate of 4.09%, also with a £1,495 fee and free standard valuation.
The mutual also has a fee-free five-year fix at 90% LTV with a rate of 4.77%. This is aimed at first-time buyers and offers £1,000 cashback as well as a free standard valuation.
Ben Merritt, director of mortgages at Yorkshire Building Society, said: “We’re acutely conscious that, as we come out of the main winter period and as government help with energy bills comes to an end, consumers will start to feel the cost of living crisis even more keenly.
“With this in mind, we’re actively monitoring market developments and are committed to taking every possible opportunity to pass on savings to help people reduce what is, for most, their biggest monthly outgoing.”
More for the sub-4 war
The news of YBS cutting rates below the 4% threshold follows on from both HSBC and Virgin Money doing the same earlier in the week. On Tuesday, HSBC launched the first 3.99% five-year fixed rate mortgage deal since September 2022.
Meanwhile, a day later, Virgin Money launched its own five-year fixed rate remortgage deal at 3.95%, at 65% loan to value (LTV) with a £995 fee, reduced by up to 0.25%.
In our headline on Tuesday, YourMoney.com asked “HSBC first to launch sub-4% five-year mortgage deal: Will others follow?”. It certainly looks like they are, which is good news for borrowers.