Yorkshire Building Society’s £5,000 Deposit Mortgage product, which provides mortgages to first-time buyers with a £5,000 deposit, has seen a 0.15% rate reduction and is now priced at 6.24%. 

This option was launched in March and the mutual will lend against properties up to a maximum value of £500,000, meaning borrowers can effectively access a 99% loan-to-value (LTV) mortgage. 

Other reductions include a two-year fixed rate, down from 4.54% to 4.39%, at 75% LTV. This is available for remortgage, has a £1,495 fee, and offers a free standard valuation as well as a free remortgage legal service. 

There is also a three-year fixed remortgage deal that has been lowered from 4.49% to 4.34%, up to 75% LTV. This also has a £1,495 fee, free standard valuation and free remortgage legal service. 

At 90% LTV, Yorkshire Building Society has reduced the mortgage rate of a five-year fixed purchase product from 5.44% to 5.24%. This has no fee, offers £2,000 cashback and comes with a free standard valuation. 

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Aidan Smith, product manager at Yorkshire Building Society, said: “We’re delighted to announce our second August rate cut, and particularly pleased that the window of opportunity provided by market conditions has enabled us to lower the cost of our £5,000 Deposit Mortgage, offering a much-needed helping hand to first-time buyers. 

“We’ll continue to closely watch developments with a view to seizing further opportunities to pass on further value wherever possible.” 

Rachel Springall, finance expert at Moneyfacts, added: “It’s great to see Yorkshire Building Society cut mortgage rates, particularly on deals that offer incentives and are available to borrowers looking to remortgage. 

“These are the deals [that] could be in high demand in the months ahead for those coming off a fixed deal, or for those [who are] sitting on a variable revert rate and are keen to refinance.”