The Yorkshire Building Society has launched a 0.98% two-year discounted standard variable rate mortgage, which represents its lowest ever rate.

Available to both buyers and those looking to remortgage, the 65% loan-to-value variable mortgage tracks the Yorkshire’s Standard Variable Rate (SVR), currently at 4.74%, at a discounted rate of 3.76%.

It has a £1,495 product fee.

The mortgage has an interest rate collar of 0.00% allowing the customer to benefit from reductions to the lender’s SVR until their interest rate payable reaches the collar. After the initial term the mortgage rates will revert to Yorkshire’s Standard Variable Rate.

Brendan Gilligan, product manager at Yorkshire Building Society, said: “We’re really proud to launch this market-leading rate – it’s the lowest mortgage rate we’ve ever had.

“It will appeal to customers who are keeping an eye on interest rates because as well as being the lowest rate available from any provider, it also have the potential to reduce further if the Bank Rate drops.”