Yorkshire Building Society has cut its rates on mortgages for borrowers who want to minimise the upfront costs of moving or re-mortgaging by up to 0.15 per cent.
For borrowers with a 5 per cent deposit, the society is offering a 3.84 per cent two-year fixed rate, or a 4.49 per cent five-year fixed rate, with no product fee, free standard valuation and £250 cash back on completion.
Brendan Gilligan, mortgage product manager at Yorkshire Building Society, said: “As one of the UK’s largest mutual lenders, we understand how important home ownership is to young people, with our research showing that most adults under 40 prioritise buying a property over important life events such as getting married and having children.
“We also know how expensive buying your first home can be, so we’ve cut our rates on fee-free mortgages to help those trying to get onto the property ladder to minimise their upfront costs.”
Ronan Marrion, mortgage specialist at Truro-based IFA Worldwide Financial Planning, said: “It is a welcome move to see any lender offer these fee-free options as many first-time buyers struggle to find the deposit they require and then find they have valuation fees, arrangement fees, etc, to factor in.
“On top of this the two-year fixed rate is very competitive and I am sure it will be in great demand.
“The 95 per cent options LTV are a little higher than what is currently around and face stiff competition from the likes of Santander, Halifax and Natwest.”