Yorkshire Building Society Launches Sub 4% Remortgage Rate
Yorkshire Building Society has introduced a remortgage deal with an interest rate below 4% for individuals who can make a 25% deposit. The Society has lowered rates by up to 0.65 percentage points.
Among its offerings is a five-year fixed-rate mortgage at 3.99% for those looking to buy or remortgage with a 25% deposit and a £1,495 fee. Additionally, there is a two-year fixed-rate deal at 4.49% with the same deposit requirement and fee. For homebuyers with a 10% deposit, a five-year fixed-rate deal at 4.79% is available, featuring no fee and £2,000 cashback.
Moneyfacts reports that the average five-year fixed homeowner mortgage rate across all deposit sizes is 5.29%, while the average two-year fixed rate is 5.69%. Fixed mortgage rates have been decreasing due to falls in swap rates, and experts anticipate more lenders to make significant cuts in the coming weeks.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, expressed optimism about the downward trend in fixed mortgage rates, noting that over 30 lenders have cut fixed-rate mortgages since the start of the year. She highlighted the potential for more cuts in the future, driven by lower swap rates.
Aidan Smith, the mortgage product manager at Yorkshire Building Society, credited the positive market response to the recent drop in inflation for the significant falls in interest rates. Other lenders, including Barclays, have also reduced mortgage rates at the beginning of 2024, with reductions of up to 0.50 percentage points across their residential purchase range.