Market-leading mortgage deal launched

Competition in the mortgage market has been ramped up with the launch of a new two-year fixed-rate deal with a market-leading rate of 1.17%.

Borrowers taking out the loan, available from Yorkshire Building Society, will need to have a 35% deposit, and pay a £1,345 product fee.

Financial information website Moneyfacts.co.uk said that while the rate from the Yorkshire is not the lowest that has ever appeared on the market, it is the lowest of its kind that is currently available, according to its records.

Charlotte Nelson, a finance expert from Moneyfacts.co.uk, said: "This 1.17% deal from Yorkshire Building Society is currently the lowest two-year fixed-rate mortgage on the market.

"This means it will be a highly attractive choice for borrowers with a 35% deposit who are looking to keep their monthly repayments down."