by Mark Johnston
Yorkshire Building Society Reduces the Rate on Two Year Fix Mortgage.
It seems that currently Competition in the two and five year fixed rate space is fierce as lenders bid to out do each others’ headline rates due to lenders having more access to cheap mortgage funding thanks to the funding for lending scheme.
The latest house purchase and mortgage figures released this week show there has been a real increase in activity in the past few months.
This particular deal is available up to 65 per cent loan to value (LTV) with a total fee of £975, made up of a £845 product fee and a £130 processing fee.
David Hollingworth, of mortgage brokers, London & Country Mortgages, said: “This is a good deal but it is not necessarily the best deal on the market.”
Although this 1.66 per cent two year fix is significantly higher than the market leading rate, the comparatively low fee of £975 makes it a good deal for borrowers with loans of £200,000 and above.
Research shows that it is significantly cheaper than West Bromwich building society’s 1.48 per cent fix and HSBC’s 1.49 per cent fix, as both come with a £1,999 fee.
This deal runs until 30 September 2015 and it also allows overpayments of up to 10 per cent of the outstanding balance, as well as underpayments and payment holidays.
Moneyfacts, a comparison website suggest that “Not only does this deal offer a great rate but a reasonable fee as well, making it a cost effective choice for many.”
The building society has also cut the rates on a number of other products by 0.2 per cent and will offer a two year fix at 2.14 per cent up to 75 per cent loan to value (LTV), a 3.29 per cent two year fix at 85 per cent loan to value (LTV) and a 2.34 per cent three year fix at 75 per cent loan to value (LTV).
Brendan Gilligan, product manager at Yorkshire Building Society, said “we hope these additional reductions will help even more people to own the property they want.”
The Yorkshire building society is one of the UK’s largest and most successful building societies with around 230 branches.
In 1982 The Huddersfield & Bradford and West Yorkshire Building Societies merge and the Yorkshire Building Society was born!
Then on 1 April 2010 the building society merges with Chelsea Building Society, meaning their combined assets were over £30 billion, with 2.8 million members and a network of 178 branches.
In October 2011 the Yorkshire building society acquired Egg mortgage and savings book, and the Egg brand, they also merge with the Norwich & Peterborough Building Society on 1 November 2011.
Therefore at the end of 2012, the building society’s assets had grown to approximately £33 billion with 3.5 million members, thus meaning they are in a position of financial strength to offer their members financial security and long term value.
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