"Swap rates – upon which fixed rate mortgages are priced – have fallen so much recently that they are becoming cheaper to price than tracker mortgages."
Available at 65% LTV is a two-year discounted SVR mortgage at 1.15%, based on an SVR discount of 3.59%. Borrowers with a 25% deposit can opt for a 1.23% rate, based on an SVR discount of 3.51%, over a two-year period.
Both mortgages are available to house purchase and remortgage customers and come with an £845 fee.
Also each home loan is portable, meaning customers can transfer their mortgage to a new property without charge.
Brendan Gilligan, Mortgage Product Manager at Yorkshire Building Society, said: “Many borrowers continue to keep an eye on interest rates, and want to make the most of the low base rate environment.
“However, swap rates – upon which fixed rate mortgages are priced – have fallen so much recently that they are becoming cheaper to price than tracker mortgages.
“A discounted SVR product allows us to offer a competitive rate for those who want to keep repayments as low as possible but who understand they may go up or down in future.
“These new mortgages have the lowest rates we currently offer so they may appeal to borrowers looking for the lowest possible monthly repayments over a short period. However the rate is variable, meaning it could rise as well as fall, so customers should factor this into their budget.”
