Yorkshire Building Society has launched its first mortgage product with a rate below 4% for the first time since September last year.

The society has also announced it is further reducing rates across its range by up to 0.25%.

Mortgage rates rose sharply in September 2022, amid the economic turmoil that followed the government’s mini-Budget.

The latest changes from Yorkshire Building Society, however, mean it is now offering a five-year fixed rate mortgage at 3.98%. This is available up to 75% loan-to-value (LTV) for remortgage purposes, with a £1,495 fee, remortgage legal services and free standard valuation.

Yorkshire also has an equivalent five-year fix for house purchase, again up to 75% LTV, which features a rate of 4.09%, with a £1,495 fee and free standard valuation.

Aimed at first-time buyers, the society’s offering also now includes a fee-free five-year fix to 90% LTV at 4.77% which offers £1,000 cashback as well as free standard valuation.

This is Yorkshire Building Society’s second mortgage product relaunch so far this year, and the society said it is a “signal of its ongoing intent” to pass on value to borrowers.

Director of mortgages at Yorkshire Building Society, Ben Merritt, 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.”

Commenting on the new range, finance expert at Moneyfacts, Eleanor Williams, added: “The latest update from Yorkshire Building Society features some competitively priced new products which may appeal to various types of mortgage borrowers, from those looking to take a step onto the property ladder to those refinancing their current home.

“A number of these new options take their place within our best buy tables, and are welcome additions to a bustling sector based on assessment of their overall true cost.”

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