The deal is for first and second-time buyers who borrow up to a maximum of £500,000 at 95% loan-to-value (LTV).
A fee of £975 is payable on the deal, of which £845 can be added to the mortgage.
The two-year fixed rate has been rated ‘outstanding’ by financial information provider Moneyfacts.co.uk, the highest rating the organisation awards.
Charlotte Nelson, finance expert at Moneyfacts.co.uk, said: “Yorkshire Building Society has improved its range for smaller deposit holders with the 3.68% two-year fixed rate deal, and enters the 95% LTV market as one of the lowest deals in its sector.
“The 95% LTV market is the strongest it has been for a long time with the average rate falling and the number of products increasing from 109 two years ago to 242 today. In that time we have seen the average two-year fixed rate mortgage at 95% LTV decrease from 5.01% two years ago to 4.29% today,” she added.
“The improving 95% LTV mortgage market will come as a welcome relief to many borrowers who have struggled to find suitable mortgage deals within their financial capabilities. However, these deals won’t be available forever, so borrowers need to act fast to secure a great deal.”