Yorkshire Building Society’s 2-Year Tracker Mortgage
The building society’s newest offer is a 2-year tracker mortgage with an initial interest rate of 0.78%, available to customers with a minimum 35% deposit and a £995 lender fee. It also comes with a free standard valuation. The estimated monthly payment for this deal would amount to £1,193 for a mortgage of £325,000 for a property valued at £500,000. Early repayment charges apply, and the interest rate charged will adjust according to any changes to the Bank of England’s (BoE) base rate, meaning it could rise or fall. It reverts to the lender's standard variable rate, currently 4.49%, after the introductory period.
What is happening with mortgage rates?
The so-called “mortgage wars” - which has seen banks and building societies compete to offer homeowners the best rates - have driven mortgages to record lows over the past year. TSB set the wheels in motion back in May when it launched the first sub-1% fixed-rate deal since 2017, and lenders have been vying for the top spot ever since.
In recent years, mortgages with interest rates below 1% have been almost non-existent, but there are now over 100 on the market. The cheapest mortgage on offer is now Yorkshire Building Society’s 0.78% 2-year tracker, followed closely by Platform’s 0.79% 2-year fixed deal - although this has a maximum 60% LTV. Indeed, most of these record-breaking mortgages are only available to those with a hefty deposit of at least 40%, making Yorkshire Building Society's minimum of 35% even more attractive.
There have been no signs yet of the competition slowing down, even as the housing market eagerly awaits a decision from the BoE on its base rate, which could have significant consequences for mortgages across the UK. You can read more about what is happening with the BoE’s base rate, and what it could mean for mortgages, in our article “When will interest rates rise (or in fact be cut)? – Latest predictions”.
Cheapest 2-year variable mortgage deals
Based on a 25-year repayment deal on a property worth £500,000 with a 65% LTV (£175,000 deposit).
| Lender | Initial Interest Rate | Standard Variable Rate | Monthly Repayments |
| Yorkshire Building Society | 0.78% | 4.49% | £1,193 |
| Barclays | 0.95% | 3.59% | £1,217 |
| Hinckley & Rugby Building Society | 0.99% | 5.89% | £1,223 |
| Accord Mortgages | 1.19% | 4.49% | £1,252 |
| Furness Building Society | 1.19% | 5.14% | £1,252 |
Cheapest 2-year fixed rate mortgage deals
Based on a 25-year repayment deal on a property worth £500,000 with a 65% LTV (£175,000 deposit).
| Lender | Initial Interest Rate | Standard Variable Rate | Monthly Repayments |
| Yorkshire Building Society | 0.90% | 4.49% | £1,210 |
| Platform | 0.92% | 4.34% | £1,213 |
| Santander | 0.94% | 3.35% | £1,216 |
| Barclays | 0.96% | 3.59% | £1,218 |
| Leeds Building Society | 0.96% | 5.29% | £1,233 |
You can find out more about the best 2-year fixed and variable rate mortgage deals for you using our mortgage best buy calculator.
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