The deal is currently the lowest price on the market for a 90 per cent loan to value mortgage.
This is discounted 2.85 per cent from the mutual’s standard variable rate (SVR) of 5.2 per cent. Early repayment charges apply for the discounted period.
The loan size offered by the Vernon ranges from between £150,000 and £300,000. It is available both direct and through brokers and has a £999 fee.
The mortgage is not restricted to the mutual’s local area. All its broker-facing products are now nationally available.
First-time buyers, remortgagors and homeowners can apply for the product.
Brendan Crowshaw, head of mortgage and savings distribution at Vernon Building Society, said: “We know that 90 per cent LTV mortgages are in demand, not just from first-time buyers but also homeowners making that next step or remortgaging, so we’re pleased to support this sector.
“Our new 90 per cent LTV discounted mortgage has a low interest rate of 2.35 per cent and borrowers can apply for the mortgage over the phone, in branch or via a mortgage broker.”
Cheapest 90 per cent LTV
According to data from Moneyfacts, as of today this is the lowest rate on the market for a mortgage at 90 per cent LTV.
The second lowest rate comes from Stafford Railway Building Society which is a discounted product at 2.69 per cent. The rate is 21 basis points below its SVR of 2.95 per cent and applies for three years. This deal is only available direct.
The 90 per cent LTV with the highest current rate is the Chorley Building Society product which is also a discounted variable at 3.2 per cent. The mutual’s SVR is 5.24 per cent. The discounted rate is for a two-year term and available both through brokers or direct to customer.
The rate for Vernon’s product is also cheaper than the average two-year fixed mortgage across all LTVs as of today, which is 2.57 per cent. Meanwhile it is slightly higher than the average tracker rate for a two-year fixed, which is currently 2.27 per cent.