by Mark Johnston
Yorkshire Building society launch a market leading fixed rate product.
Yorkshire building society is Britain’s second largest building society and also the ninth largest high street financial services provider.
The building society has recently announced a ‘solid financial performance’ in 2012, their new mortgage lending has increased by 12 per cent to £4.6 million.
First time buyers comprised 38 per cent of all house purchase mortgages, new lending above 85 per cent loan to value (LTV) increased to £490 million.
Yorkshire building society has therefore outlined plans to invest £160 million in a 5 year programme to improve products and services to its members.
The building society now has around 3.5 million members which is up from the 200,000 they had on their books in early 2012.
After many failings by some of the biggest banks in Britain many customers switched to building societies and this could be one of the contributing factors to the Yorkshire building society’s increased numbers.
Chris Pilling, chief executive of Yorkshire building society, stated that this in fact may be due to “in the past few years, the financial sector has been undermined by a series of incredibly serious errors of judgements by the big banks which have left customers questioning who they do business with. Our values, combined with our continued financial strength, means we are investing in the future with confidence.
According to research by the consumer group Which?, the Yorkshire building society scored over 70 per cent in customer satisfaction.
Therefore then with mortgage rates in free fall at the moment it is no wonder that the Yorkshire building society has then cut its rates by up to 0.1 per cent.
The lender has also launched the lowest ever market leading five year fixed rate deal with a rate of 2.64 per cent.
Moneyfacts, the comparison website, has reported that this particular product is now the lowest five year fixed rate on record as it has overtaken the Post Office’s 2.74 per cent rate.
To qualify for this deal borrowers need to have a deposit of 40 per cent, which is a sizeable sum of money and this therefore means that this deal will be off limits for many people, especially first time buyers. The product also comes with a hefty £1,495 fee.
Clare Francis, mortgage expert at Moneysupermarket.com, a comparison website, suggests “it is very easy to be attracted by low headline rates when looking at mortgages, but you must also factor in the fees you will be charged to take the mortgage out.
Separately, the building society is also cutting the rate on its two year fix deal from 3.79 per cent to 3.74 per cent on a 90 per cent loan to value (LTV) with a fee of £995.
Louise Scott, a spokesperson for the Yorkshire building society, states “we have launched some fantastic 2 year fixed rates products recently. But we are also committed to helping those customers who want to secure their payments over a longer term”.
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