Yorkshire Building Societyís latest offering – a two-year mortgage with an interest rate fixed at 1.07% – marks a milestone on the path of UK mortgage rates as they look set to drop below 1% any time soon.
This latest product from Yorkshire Building Society (YBS) passes the Co-op Bankís previous lowest rate which stood at 1.09%. Not only does YBSís mortgage come with better rates, but also comes with a reduced fee: £1,369 as compared to Co-opís £1,499.
This record-breaking low rate allowed YBSí chief commercial officer, Mike Regnier, to say proudly that his company is: ìa responsible mutual lender which uses its financial strength to support its members rather than external shareholders. This means that we can offer our members very competitive rates in order to enable them to buy the home of their choice.î
He confirmed this by explaining that: ìEarlier this year, we launched a 1.18% mortgage, which was then our lowest ever rate to date, and we are now very proud to better that by offering the UKís lowest ever two-year fixed rate mortgage of 1.07%.î
YBS have also announced a rate reduction of up to 0.35% throughout their entire range of mortgages.
All of this continues a general trend of falling mortgage rates across the UK. Indeed over the last year, the average interest rates for mortgages have fallen so significantly that you would actually get a better rate on a five year fixed plan today than you would on a two-year plan a year ago.
Strangely though, this consistent dive in rates has not been reflected in the number of borrowers among first time buyers, which has actually fallen by up to 24% when compared with the peak numbers in the final quarter of last year.
It is not a universal trend either – HSBC have recently taken off the market their headline making five year fixed plan at 1.99% and instead now offer rates of 2.29% for the equivalent deal, albeit with a now slightly reduced fee.
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