Yorkshire Building Society has unveiled a two-year 0.89% mortgage, the lowest rate on the market today and the lowest rate ever offered, according to comparison service Moneyfacts.
What’s the deal exactly?
Mortgage borrowers can take advantage of a 0.89% rate with Yorkshire Building Society. This product offers a 3.85% discount from Yorkshire’s standard variable rate (SVR), which applies for two years before reverting to the SVR itself, which is currently 4.74%.
This is a variable deal, so if Yorkshire’s SVR reduces over the two years the variable rate would also fall but conversely it would also increase if the SVR rose. Borrowers must have a 35% deposit and it comes with a product fee of £1,495.
Why should I care?
Mortgage rates are already at historically low levels but this is the lowest headline rate on the market today and the lowest rate ever offered, according to Moneyfacts.
If you’re looking to remortgage then it is very likely this loan will reduce your monthly payment. But remember to consider the full mortgage product, including fees and restrictions, to make sure this is the right deal for you.
What’s the catch?
This is a direct-only mortgage, so it’s only available via Yorkshire Building Society branches, telephone or online.
Also be aware that the rate of interest is variable – this is not a fixed-rate deal. So if the SVR increases in the next two years then your monthly repayments will also go up.
What other options do I have?
If the £1,495 product fee is off-putting then an alternative £995 fee option is available from Yorkshire at a rate of 1.05% - 3.69% off the SVR. If you don’t have a 35% deposit, Yorkshire also offers a range of first-time buyer mortgages and other deals offering £250 cashback.
Of course Yorkshire may not be the best lender for you. Use the Moneywise mortgage comparison tool to help find the right deal for you.
Where can I find out more?
Full details are available on the Yorkshire Building Society website.