Yorkshire Building Society and Chelsea Building Society have unveiled new mortgages at 1.39% and 1.38% for borrowers with 35% deposits.

The Yorkshire mortgage has a product fee of £845 while the Chelsea offering has a product fee of £1,545.

Borrowers with 35% deposits looking for a mortgage fixed for three years can now receive a rate of 2.18% reduced from 2.34% including an £845 product fee from the Yorkshire, while Chelsea customers are being offered a rate of 2.14%, reduced from 2.24%, with a £1,545 product fee.

Other highlights from the Yorkshire’s reductions include:

• Three-year fixed term mortgage at 3.49% (reduced from 3.99%) with an £845 product fee for borrowers with a 10% deposit
• Three-year fixed term mortgage at 2.99% (reduced from 3.29%) with an £845 product fee for borrowers with a 15% deposit
• Two-year fixed term mortgage at 2.49% (reduced from 2.54%) with an £845 product fee for borrowers with a 15% deposit

Highlights from Chelsea Building Society’s reductions include:

• Three-year fixed term mortgage at 3.44% (reduced from 3.94%) with a £1,545 product fee for borrowers with a 10% deposit
• Three-year fixed term mortgage at 2.94% (reduced from 3.24%) with a £1,545 product fee for borrowers with a 15% deposit
• Two-year fixed term mortgage at 2.44% (reduced from 2.49%) with a £1,545 product fee) for borrowers with a 15% deposit

Clare Slater, mortgage product manager, said: “We aim to offer our customers highly competitive rates and we believe that these rate reductions on popular LTV brackets will offer borrowers an appealing product. The reductions at 90% LTV will also help some first-time buyers make their first step on to the property ladder.”