The Yorkshire Building Society has reduced its two-year fixed-rate mortgage costs to 5.54 per cent.
In addition, the building society has lowered its application fee for this product to £895, rather than the usual cost of £995.
The product is available to remortgage and house purchase customers and has a maximum loan-to-value of 75 per cent.
Furthermore, the Yorkshire Building Society has reduced the rate on its current two-year fixed-rate 4.99 per cent mortgage to 4.89 per cent and lowered the handling fee from three per cent to 2.5 per cent.
Tom Girling, mortgage product manager at the Yorkshire Building Society, said: "There are signs of increasing activity in the mortgage market which can only be helped by falling rates.
"We are keen to pass on money market rate reductions to borrowers who are finding life tough at the moment with all of the other cost of living increases in fuel and food items."
In related news, first direct has launched a new fee-free offset tracker product at a rate of 0.99 per cent above the Bank of England's base rate .
