Long term fixed rate mortgage option from Yorkshire Building Society

With the base interest rate in the UK still at its lowest level in the history of the Bank of England, at just 0.5 percent, many are now wondering when the base rate will start to increase again, and this is causing many people to wonder whether they should fix their rate over a period of time when taking out a mortgage.

There are different options available for those that want to fix their mortgages, and whilst the choice is not as great as it was prior to the financial crisis more and more lenders are becoming more lenient when it comes to offering a good choice of mortgages, although these are often to those that have a higher deposit level.

It has now been announced that the Yorkshire Building Society is offering a long terms fixed rate mortgage, with those considering buying a home or remortgaging now able to benefit from a ten year fixed rate mortgage. The deposit required on the mortgage is 25 percent, and borrowers will benefit from a rate of 4.99 percent.

The mortgage also has an arrangement fee that borrowers will have to pay, and this comes to £995. Whilst a ten year fix will provide many people with increased stability and peace of mind there are also some that may feel that this is too long a period to fix for.

An official from the building society said: “This product presents a fantastic opportunity for borrowers looking for long-term value, protection from future interest rate rises and piece of mind when it comes to their mortgage payments. Over the last ten years the average mortgage standard variable rate across the market has been 6.2%* so our new range of ten-year products offer great value.”

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Two building societies to merge

It has recently been revealed that two building societies, the Yorkshire and the Barnsley Building Societies, are to merge, with the larger Yorkshire building Society agreeing to the merger with its smaller rival in a form of rescue bid. This is one of a number of recent mergers and takeovers in the world of banking in the UK. The smaller building society, Barnsley, approached its rival with a view to a merger after losing a possible £10 million in the Icelandic bank collapse. Read more

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Building societies ‘offer best value’

Building societies are offering a better standard of service in most areas than banks, according to new research.

As well as providing higher service standards, the study also claims that building societies’ mortgages and savings, on average, represent better value than those offered by banks.

The research has been carried out independently for the Building Societies Association (BSA), a trade body which represents all of the UK’s 59 building societies.

Speaking at the Association’s annual lunch last Thursday, BSA chairman Iain Cornish said: “Building society savers and borrowers are significantly more satisfied with the services which they receive from building societies, than are customers of banks.

“The whole building society model is more transparent, simpler, more prudent and more trusted and we simply do not have the same motivation as banks to take massive risk positions in pursuit of profits for shareholders.”

Pointing to two recent reports published by a price comparison site, Mr Cornish claimed that building societies offered 70 per cent of the UK’s best value mortgages and 70 per cent of the best-paying savings products in the last 18 months.

Mr Cornish is also chief executive of the Yorkshire Building Society.

Tags: Mr Cornish, new research, standard, Iain Cornish, Yorkshire Building Society, societies