Yorkshire Building Society (YBS) has significantly reduced its mortgage rates in a move that is likely to benefit thousands of homeowners and first-time buyers across the UK. As of Thursday, April 17, 2025, YBS has introduced a wave of rate reductions across its mortgage product portfolio, with some fixed rates now falling below the critical 4% mark.
These changes are part of a broader adjustment in the mortgage market, driven by expectations of more stable interest rates and increasing competition among lenders. The latest reductions by YBS include cuts of up to 0.55 percentage points on selected products, aimed at making home ownership more accessible in a still-challenging economic environment.
Detailed Rate Reductions by LTV Brackets
Yorkshire Building Society has tailored its new rates based on loan-to-value (LTV) bands, ensuring options for a wide range of borrowers.
| Loan-to-Value (LTV) | Maximum Rate Cut | New Starting Rate | Additional Benefits |
|---|---|---|---|
| Up to 90% | 0.55% | From 4.68% | No fee, free valuation |
| Up to 85% and 80% | 0.40% | From 4.25% | Standard valuation included |
| Up to 75% | 0.37% | From 3.92% | £995 fee, free valuation |
| Up to 60% | 0.35% | From 3.98% | £995 fee, free valuation + legal service |
These reductions are designed to support a variety of borrowers, from those remortgaging to new homebuyers and first-time buyers.
Highlighted Mortgage Deals
Among the standout offers now available in May 2025 are:
- Two-Year Fixed Remortgage at 60% LTV: Now 3.98%, down from 4.23%. Includes a £995 fee, free standard valuation, and free legal service for remortgages.
- Two-Year Fixed for Home Purchases at 75% LTV: Reduced to 3.92% from 4.27%, includes a £995 fee and free standard valuation.
- First-Time Buyer Deal at 90% LTV: Fee-free two-year fix at 4.68%, down from 5.23%, with free valuation.
Expert Reactions and Market Outlook
Aidan Smith, Product Manager at YBS, noted that the lender is responding proactively to evolving market conditions:
“We’re committed to offering some of the most competitive deals available, including several under 4%, which is a strong signal to those considering switching lenders or stepping onto the property ladder.”
Smith emphasized the Society’s ongoing commitment to monitoring the market and adapting rates to deliver meaningful savings to customers.
Rachel Springall, a finance expert at Moneyfacts, praised the move:
“It’s encouraging to see another round of rate cuts, especially with so many homeowners needing to refinance this year. This brings much-needed relief to many borrowers.”
Why This Matters Now
With the Bank of England maintaining a relatively stable base rate in early 2025 and inflation showing signs of cooling, lenders have more flexibility to pass on savings. YBS’s latest move may pressure other lenders to follow suit, improving conditions for buyers and remortgagers alike.
Conclusion
Yorkshire Building Society’s bold reduction in mortgage rates represents a timely opportunity for borrowers in May 2025. Whether you’re purchasing your first home, moving, or looking to remortgage, these new deals—especially those under 4%—could mean significant savings. As the mortgage market continues to evolve, YBS appears well-positioned to remain competitive and responsive.
FAQ
What is the lowest mortgage rate currently offered by YBS?
The lowest available is a two-year fixed rate at 3.92% for up to 75% LTV home purchases.
Are there any fee-free options for first-time buyers?
Yes, there is a fee-free two-year fixed deal at 4.68% for up to 90% LTV, which includes a free valuation.
Does YBS offer free legal services on remortgages?
Yes, remortgaging customers can benefit from free standard legal services and valuation on selected products.
When were the new rates announced?
These updated rates were introduced on Thursday, April 17, 2025.
Will these rates change again soon?
YBS has indicated it will continue to monitor the market and adjust rates as needed based on economic shifts.
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