Yorkshire Building Society is launching its first sub-5% five-year fixed rate mortgage since the end of June, as well as reducing rates across its range.

From Monday 18 September, it is reducing rates across all loan-to-value (LTV) bands with the biggest cut, of up to 0.46%, applying to its 95% LTV products.

Maximum reductions at other LTVs range from up to 0.22% to a maximum of 0.25%.

Examples of products in the new range include:

A five-year fixed rate at 4.99% with £1,495 fee for both house purchase (with free standard valuation) and remortgage purposes (with free valuation and remortgage legal service), at 75% LTV.

A five-year fixed rate at 5.24%, with £1,495 fee and free standard valuation for house purchase, at 85% LTV

A five-year fixed rate at 5.29% for remortgage, with £1,495 fee, free standard valuation and free remortgage legal service, at 85% LTV

A two-year fixed rate at 6.19% for house purchase, with £1,495 fee and free standard valuation, at 95% LTV.

Yorkshire Building Society director Ben Merritt comments: “Throughout the interest rate volatility of recent months, we’ve consistently endeavoured to seize every opportunity to pass on value to hard-pressed borrowers.

“This week, favourable market swap rates presented just such a window to reduce our mortgage costs, and offer the greatest incentive to those people who typically struggle the most, those with the lowest deposits to put down, including first-time buyers.”