Three lenders lower mortgage rates as cheapest deal falls to 3.91%

Three lenders lower mortgage rates as cheapest deal falls to 3.91% There is also a new best-buy for people buying with a 25% deposit By ED MAGNUS Updated: 07:32 EDT, 17 April 2025 e-mail View comments Three more lenders have announced mortgage rate cuts, which includes some of the best deals on the market. Yorkshire Building Society, Virgin Money and The Mortgage Works (TMW) have all joined the home loan price war.

However, there are signs that these cuts may be short-lived, as experts have warned that mortgage rates do not have much further to fall . Yorkshire Building Society's changes are the most dramatic, as the mutual has reduced rates by up to 0.55 percentage points on some mortgages.



It is now offering the cheapest two-year fix on the market for those buying with a 40 per cent deposit. Its 3.91 per cent deal comes with a £995 product fee.

On a £200,000 mortgage being repaid over 25 years, that would mean paying £1,046 a month. Big cuts: Yorkshire Building Society is reducing selected rates by up to 0.55% on products up to 90 per cent loan-to-value However, perhaps even more noteworthy is its 3.

92 per cent two-year fix for those buying with a 25 per cent deposit - a best-buy in that category. Those remortgaging with 40 per cent equity will be able to secure a slightly higher rate of 3.98 per cent.

Yorkshire Building Society is also offering the lowest three-year fix on the market at 3.95 per cent with a £995 fee. It has also launched new rates for first-time buyers and those buying with smaller deposits.

Having cut its fee-free two-year fix for those buying with a 10 per cent deposit from 5.23 per cent to 4.68 per cent, it is now the market leader.

Someone securing a £200,000 mortgage with this rate could expect to pay £1,132 a month if repaying over 25 years. In more positive news for first-time buyers, several lenders have recently changed their mortgage lending rules to allow buyers to borrow more . RELATED ARTICLES Previous 1 Next Mortgage rates don't have much further to fall in 2025, say.

.. I'm buying a top floor flat - can I build a roof terrace.

.. Share this article Share HOW THIS IS MONEY CAN HELP Looking for a new mortgage? Check out the best rates here Rachel Springall, finance expert at Moneyfacts, said: 'It's fantastic to see Yorkshire Building Society make more cuts to fixed rates within its mortgage range.

'There are millions of borrowers due to refinance this year, so it's positive news to see rates coming down, particularly on deals which also carry cost-saving incentives and fee-free options for those with small deposits.' Meanwhile, Virgin Money is cutting rates by up to 0.2 percentage points.

The changes will benefit remortgagers, homebuyers and landlords. Landlords remortgaging in their own names can secure some of the best rates on the market with Virgin. Its lowest five-year fix for someone refinancing at 75 per cent loan-to-value is 3.

93 per cent with a 3 per cent product fee. The Mortgage Works (TMW), which is Nationwide's buy-to-let arm, is cutting rates on limited company mortgage deals by up to 0.25 percentage points and also by 0.

2 percentage points for landlords who buy or hold property in their own name. Yesterday HSBC and Santander both made mortgage rate cuts following on from Barclays which lowered a number of its deals last week. Two-year fixed rates are lower than five-year fixes Since 2022, the lowest five-year fixes have trended below the lowest two-year fixes.

However, the gap has been narrowing in recent weeks and now the lowest two-year fixed mortgages are cheaper than five-year deals. This could see borrower preferences switch back to the shorter-term fixed rate deals. Last year, borrowers were split.

Some 43 per cent of people taking out a mortgage opted to fix for two years while 45 per cent chose to fix for five years, according to UK Finance data. Your browser does not support iframes. Chris Sykes, technical manager at broker Private Finance, said: 'Fixed-rate mortgage pricing is becoming more competitive again, with some lenders now offering deals below 4 per cent - a level not seen for some time.

' 'Coventry Building Society recently lowered its rates to attract new borrowers, only to re-increase them shortly after due to overwhelming demand. This highlights the balancing act lenders face in today's market. 'There's currently enough margin for lenders to offer their most attractive rates under 4 per cent, helped by a shift in swap rates with two-year Sonia swaps now level with or even slightly below five-year swaps.

'This creates a scenario we haven't seen in a number of years now where two-year fixes could start pricing lower than five-year ones.' Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice.

Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes.

If you’re ready to find your next mortgage, why not use This is Money and L&C’s online Mortgage Finder. It will search 1,000’s of deals from more than 90 different lenders to discover the best deal for you. > Find your best mortgage deal with This is Money and L&C Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002).

The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage. Share or comment on this article: Three lenders lower mortgage rates as cheapest deal falls to 3.

91% e-mail Add comment Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use.

We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence. Comments 0 Share what you think No comments have so far been submitted.

Why not be the first to send us your thoughts, or debate this issue live on our message boards. Add your comment Enter your comment By posting your comment you agree to our house rules . Submit Comment Clear Close Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual.

No Yes Close Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook.

You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy . More top stories.