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YBS latest lender to offer sub-four per cent mortgage; Santander lowers rates – round-up

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  • 09/02/2023
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YBS latest lender to offer sub-four per cent mortgage; Santander lowers rates – round-up
Yorkshire Building Society has followed in the footsteps of Virgin Money and HSBC by cutting select mortgage rates to below four per cent.

The mutual has reduced the pricing on its five-year fixed mortgage up to 75 per cent loan to value (LTV) by 0.25 per cent, bringing it to 3.98 per cent.  

This is the first sub-four per cent mortgage available through the mutual since September. 

The product is available for remortgage and has a £1,495 fee. It offers the incentives of a free standard valuation and remortgage legal services. 

An equivalent product for house purchase now has a rate of 4.09 per cent, also with a £1,495 fee and free standard valuation. 

The mutual also has a fee-free five-year fix at 90 per cent LTV with a rate of 4.77 per cent. This is aimed at first-time buyers and offers £1,000 cashback as well as a free standard valuation. 

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

 

Santander cuts rates 

Santander will reduce rates from 10 February across its new business mortgages by up to 0.24 per cent. 

Its purchase only mortgages from 60 to 95 per cent LTV now vary from 4.22 per cent for a five-year fix at 60 per cent LTV with a £999 fee. This has been reduced from 4.38 per cent. At the upper end, a 95 per cent LTV deal with no fee and £250 cashback has been reduced by 0.2 per cent to 5.64 per cent. 

Across its remortgage range, reductions apply to two, three and five-year fixes up to 90 per cent LTV. 

The bank’s 2.5-year fixes for new-build properties have been reduced by up to 0.17 per cent. Products between 60 and 85 per cent LTV, both with and without a fee, have been lowered. 

Santander has also withdrawn select five-year fixed broker exclusive products at 60 and 85 per cent LTV for residential borrowers, and one buy-to-let deal at 75 per cent LTV. These had fees of £1,499. 

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