The Yorkshire Building Society is launching a two-year discounted standard variable rate mortgage at 1.54% for borrowers with a 10% deposit.

Available to buyers and borrowers looking to remortgage, the 90% loan-to-value (LTV) variable mortgage tracks the Yorkshire’s Standard Variable Rate (SVR), currently at 4.74%, at a discounted rate of 3.20%.

The mortgage has an interest rate collar of 0.00% allowing the customer to benefit from any reductions to the lender’s SVR until their interest rate payable reaches the collar. They would also pay more if SVR was increased. After the initial term of two years the mortgage rate will revert to Yorkshire’s SVR.

The mortgage has a £1,495 product fee.

For borrowers at this LTV seeking a mortgage with a lower product fee, the Yorkshire also offers a two-year fixed rate mortgage at 2.49% with no upfront fee. It comes with £250 cashback on completion and free standard valuation for those looking to buy a new home, and free standard valuation and free legal fees for remortgage customers.

“We’re really proud to launch this market-leading rate, which is currently the lowest two-year mortgage available at 90% LTV,” said Charles Mungroo, product manager at the Yorkshire.

“Getting on the property ladder can be tough, so we want to help as many people as possible to achieve their dream of homeownership. We hope our new offering will appeal to first-time-buyers and borrowers with smaller deposits who want to make the most of a low rate, and benefit from a potential reduction in their monthly repayments if our SVR reduces.”

The Yorkshire also offers a 0.98% two-year discounted standard variable rate mortgage at 65% LTV, which is available to borrowers who are looking to buy or remortgage their home.