The cheapest fixed rate mortgage ever to be launched in the UK has been unveiled by the Yorkshire Building Society.
The deal, available at 1.07%, raises the prospect of mortgages soon becoming available at under 1%.
The Yorkshire product is unlikely to be much help to first-time buyers. It is available to borrowers who have a 35% deposit and comes with a £1,369 fee.
Mike Regnier, Yorkshire Building Society’s chief commercial officer, said: “We are a responsible mutual lender which uses its financial strength to support its members rather than external shareholders.
“This means we can offer our members very competitive rates in order to enable them to buy the home of their choice.
“Earlier this year we launched a 1.18% mortgage, which was then our lowest-ever rate to date, and we are now very proud to better that by offering the UK’s lowest-ever two-year fixed rate mortgage of 1.07%.”