The mortgage will be available from Friday 17 March to remortgage and home purchase customers borrowing at 60% loan-to-value (LTV). The product features a £1,495 fee.
It is the first time the building society has offered a fixed-rate mortgage of less than 1% and is currently the only fixed rate below 1% available in the market.
The rate accompanies Yorkshire’s tracker mortgage, which also holds the lowest market rate. The 65% LTV two-year discounted standard variable rate (SVR) mortgage, which tracks the Yorkshire’s SVR, currently has a rate of 0.98%.
James Farrow, Yorkshire Building Society senior mortgage manager, said: “We have seen fixed mortgage rates creep up gradually in recent months so seeing it fall to 0.99% is very welcome news for borrowers.
“We always seek to keep the cost of borrowing as low as possible and offering the lowest fixed-rate mortgage in our 152-year history clearly reflects that.”
Rachel Springall, finance expert at Moneyfacts.co.uk, said: “This brand new market-leading two-year fixed mortgage from Yorkshire Building Society is likely to delight borrowers hoping to take advantage of a competitive fixed rate with a trusted brand.
“It also has some flexibility by allowing overpayments and borrowers would be wise to take full advantage of this to reduce the mortgage term. As with any deal, it’s important that borrowers work out the overall true cost to see if it’s the best possible choice for them.”
