Yorkshire Building Society Increases Mortgage Rates Amid Swap Price Rise

by Mark Johnston

The northern based Yorkshire Building Society has announced that is raising the price of some of its fixed term mortgages. The news comes at the same time as many other lenders are increasing their prices due to the cost of swap rates going up which in turn increases the cost of lending.

Yorkshire building Society 10 year fixed rate mortgageThe building society is increasing its two, three, five and ten year fixed rate mortgages by 0.3% across the board which all have a loan to value of 75%. Surprisingly they are also increasing the rate of their two year tracker mortgage by 0.1%. At the same time the Yorkshire Building Society are launching a new five year fixed rate mortgage with a loan to value of 60% which will be priced at 3.99%.

A spokesperson at the Yorkshire Building Society said: “The rates will change in response to movement in swap rates. We are by no means the first lender to re-price.”

With swap rates on the increase the market will probably see many more announcements from lenders of price increases. Both the Skipton Building Society and Newcastle Building Society recent upped their rates.

Just recently the Yorkshire Building Society launched a 90% loan to value (LTV) mortgage so borrower would only require a 10% deposit. The fixed rate loan is has a rate of 4.99% for the next two years after which it reverts to the building societies standard variable rate (SVR).

The mortgage was aimed at first time buyers who were struggling to enter the UK housing market.New research by the Council of Mortgage Lenders (CML) has shown that many are now putting immediate plans on hold for a while until the market improves and jobs the job market is more secure.

Almost eighty five percent of those questioned said that they expected to own their own house within the next ten years. This is the highest ever recorded since the Council of Mortgage Lenders (CML) started to collect data and carry out research into potential home owners back in 1975.

Almost there is a marked rise in the number of people hoping to own their own house in the next ten years, there has been a fall in the number who are looking to buy in the next two years. Three years ago seventy eight percent of polled people wanted to own their own home within the next two years where as the recent survey has shown a marked drop to seventy six percent.

The Council of Mortgage Lenders (CML) research demonstrated that few people want to own a home in the next few years but the appetite for home ownership was still there as if anything was growing. Young people still have home ownership as an aspiration although only forty two percent of those asked between the ages of eighteen and twenty four said they wanted to own a house in the next two years. The interesting thing was that within this age group eighty eight percent still wanted to own their own house but within a longer time frame of up to ten years.

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