by Mark Johnston
Recently the Yorkshire Building Society has reviewed its mortgage range and is cutting the rates on a number of its products. As part of the review into the Yorkshire Building Societies mortgage range they have decided to cut interest rates on their two year fixed rate mortgages as well as their five year fixed rate mortgage range. These changes have resulted in the Yorkshire Building Society being catapulted to the top of the mortgage best buy tables.
The Yorkshire Building Society, which is the second largest of its type in the United Kingdom has its head office in Bradford, West Yorkshire. With Assets well over £20 billion pounds. Back in 1864 the Huddersfield Equitable Permanent Benefit Building
Society was born and has grown over the years through many mergers and continued expansion to what we know as the Yorkshire Building Society today.
The Bradford based building society is planning to launch a two year fixed rate mortgage starting at 2.89%. For those home buyers looking to purchase an average priced home which is currently around £160,000. At 2.89% interest this mortgage would work out at £756 per month.
For those first time buyers looking to purchase a more modest home, a £90,000 loan would cost around £425 per month for a mortgage over 25 years.
Home buyers looking to secure their monthly payments for a longer period may be interested in the Yorkshire Building Societies five year fixed rate mortgage which starts at 3.89%. Again, for those home buyers looking to purchase an average priced home which is currently around £160,000. At 3.89% interest this mortgage would work out at £843 per month.
Struggling home buyers looking to save on their mortgage fees may be interested in the low fee option that is available from the Yorkshire based building society. The mortgages fees start at a very low £95 which is great compared to other providers. Its worth remembering that low fees offered by mortgage providers usually mean an increase in the overall rate that is offered and this is no exception. So as always its worth checking all the fees before making any decision.
As an added bonus for customers there is also a £250 cash back offer which is open to both new and existing customers upon completion of the home loan.
The low fee version of the mortgages start from 2.99% for the two year fixed rate whilst the longer term five year products starts at 3.99%.
Chris Smith, the Yorkshire Building Societies group product manager said: “Once again our changes to our existing range will ensure that our members are getting the best value for money and we are proud to introduce these new competitive rates alongside cash-back opportunities.”.
At the start of the year Yorkshire Building Society had something of a reputation when it comes to taking over it’s smaller rivals. Last year, Chelsea was absorbed into the group in a high profile take over that lead to the Yorkshire taking on their exposure of £41 million worth of mortgage fraud within its risky buy to let sector.
2008 saw the Yorkshire take in the Barnsley Building Society after she failed under the losses associated with the collapse of some Icelandic banks and their faulted deposits.
The latest possible merger on the cards for the Yorkshire is set to take on Norwich and Peterborough but this too comes with some risk. N&P has put aside an awesome figure of £57 million to cover compensation claims by circa 3,200 customers who invested in the now failed Keydata Investment Services Ltd. This compensation aside, Norwich and Peterborough have reported a pre tax loss of £48.9 million for 2010. Taking account of this potential loss, the Norwich and Peterborough building society would have £5.1 million in pre tax profits, a better result than the year before when they posted pre tax profits of £1.3 million. This shows that the company was actually doing well before the disaster at Keydata.
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