Moneyfacts data shows that the rate is the lowest currently available on the market.
The Society has also launched an 85% LTV two-year fixed rate mortgage at 1.32%, available for purchase and remortgage.
Both new products come with a £995 product fee.
Charles Mungroo, Mortgage Manager for Yorkshire Building Society, said: “We’re committed to offering a variety of competitive home loan options to suit a range of borrowers’ needs and are proud to be able to offer the lowest rates currently available from any provider.
“We hope our latest rate reductions will appeal to customers with smaller deposits and help first-time buyers get a foot on the property ladder.”
Rachel Springall, Finance Expert at Moneyfacts, added: “First-time buyers searching for a competitive interest rate on their mortgage and who have amassed a 5% deposit will be delighted by this new deal priced at 3.15% from Yorkshire Building Society as it becomes the lowest rate currently on the high-street.
“The deal priced at 1.32% at 85% LTV will likely cause a stir with numerous borrowers thanks to its market-leading rate, particularly those looking to remortgage with a trusted brand.”
