Yorkshire Building Society has launched a new two-year base rate tracker at 3.29% as part of a host of reductions across its range, of up to 1.16%.

The new offering also includes a five-year fixed rate deal at 4.94%.

The society said the changes, which have taken effect from 9am today, are part of its latest bid to help borrowers in the current rising cost environment.

For the new base rate tracker, the Yorkshire confirmed that the product term ends on 28 February 2025 before it reverts to a rate of 4.70%. The five-year fixed rate mortgage at 4.94% has been reduced from 5.34%, and is fixed until 29 February 2028, with a maximum LTV of 75%.

Director of mortgages at Yorkshire Building Society, Ben Merritt, said: “We’re acutely conscious that people are feeling the squeeze from a variety of directions at the moment, with the rising cost of living and, more recently, the increasing interest rate environment prompted by the Bank of England’s decision to make successive changes to its base rate to try to control inflation.

“With market rates starting to show signs of settling a little lower than their recent peak, we decided there is a perfect opportunity for us to offer our borrowers even better value.

“As a mutual building society, we were established to help borrowers overcome challenges and we hope this extensive set of rate reductions will go some way towards easing the strain for people looking to buy or remortgage their home at the present time.”

Finance expert at Moneyfacts, Rachel Springall, added: “It is positive to see Yorkshire Building Society launch a competitively priced five-year fixed mortgage for borrowers who want to secure their monthly repayments. There are very few fixed mortgages priced below 5% on the market, so this deal may well be an attractive choice.

“The alternative base rate tracker mortgage is also competitively priced in its sector and may suit those borrowers who want to avoid the higher earlier repayment charges typically applied to a fixed rate mortgage.”

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