by Mark Johnston
In the last few months the Yorkshire building society has been going all out to attract new customers. For some time now they have topped the best buy tables in terms of value and pricing. A good example of their marketing leading rates is their 2.29% two year tracker which has a fee of £995 and a loan to value of 60%. By pushing some of the best deal on the market, Yorkshire Building Society has managed to treble its number of mortgages in 2010.
Back in 2009 the building society agreed £936 million of mortgages whilst last year the pushed that by almost 300% to a whopping £2.7 billion. Over 80% of the mortgages they agreed were for fixed rate home loans which an average of three years in length proving that many borrowers are still looking for security in fixed rate products over a lengthy period of time.
Iain Cornish, chief executive of the building society said: “We have remained committed to providing people with mortgages, allowing them access to the housing market at a time when lenders have made it much more difficult for home buyers to secure competitive mortgage deals”
Recently the northern based Yorkshire Building Society announced that they were raising the price of some of their 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.
The 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.
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