Highlights among the mutual’s reductions include:  

• Five-year remortgage fixes down 15bps to 4.84% at up to 80% loan to value, with a £1,495 fee, free valuation and free remortgage legal work  
• Five-year remortgage fixes down 20bps 4.69% at up to 75% LTV, with a £495 fee, £250 cashback, free valuations and free remortgage legal work  
• Two-year purchase fixes down 10bps at 4.89% at up to 75% LTV with a £1,495 fee and free valuation  

Yorkshire Building Society director of mortgages Ben Merritt says “market conditions have allowed us to reduce the rates on a number of products across our range.  

“We will continue monitoring developments closely over the coming weeks, in order to ensure our mortgages remain as competitive as possible.”  

The move comes as five major lenders – Barclays, HSBC, Santander, Halifax and NatWest – have cut mortgage rates this week as firms continue to compete for business this summer as swap rates edge lower.

Sonia two-year swap rates fell to 4.480% on 2 July from 4.612% on 3 June, while five-year rates were down to 3.983% from 4.053% over the same period. 

John Charcol mortgage technical manager Nicholas Mendes points out: “Since the general election was called, the swaps market has seen only marginal decreases — but a dip in activity has occurred as prospective buyers wait in hopes of new government incentives like increased stamp duty thresholds or more options for first-time buyers

“Lenders have also delayed making reductions, aiming to balance potential volatility in swaps.  

“Markets need stability, and although Labour has been favoured to win the election, reducing pricing prematurely could be risky, as seen in past experiences. 

“Consequently, lenders have held rates longer than preferred and are now repricing as the election concludes. 

Mendes adds: “These factors have led to a decrease in purchase and remortgaging activity, with lenders trying to make up for lost time by capturing as much market share as possible. 

“Despite the absence of a bank rate decrease, the margin exists to allow for reductions. 

“We can expect about two weeks of repricing before a pause, as lenders adjust their margins to suitable levels. However, some high street lenders may continue competing for volume.”