Yorkshire building society relaunches 90% mortgages for first-time buyers

Yorkshire building society has relaunched 90% mortgages for first-time buyers and cut its interest rates, in a rare piece of good news for those trying to get on to the housing ladder.

The lender, which suspended 90% home loans earlier this month after unprecedented demand from buyers, said these deals would only be available when at least one applicant was a first-timer.

Yorkshire said its “desire to lend has not wavered” and that it had made no changes to lending criteria or how much it was willing to offer buyers.

First-time buyers can choose from a range of deals including a five-year fixed-rate with an interest rate of 2.99%, a £495 product fee and a free valuation.

The society has cut rates across the rest of its range. A similar five-year fixed-rate for remortgagors borrowing up to 65% loan to value has an interest rate of 1.49% and a £1,495 fee, while for anyone moving home the rate is 1.62%, with a £495 completion fee, free valuation and £500 cashback.

Last week the UK’s largest building society, Nationwide, increased the deposit it needed from buyers from 5% to 15% and the choice for those without large savings to put down has been dwindling.