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Latest mortgage news and deals and offers from the Yorkshire Building Society

Young First Time Buyer Put Plans on Hold

More people in the United Kingdom want to be home owners than ever before. Buying and owning a house is now seen as a right and not a privilege. But many of these potential home owners are young first time buyers who are deciding to but their plans on hold. Read more

Top Fixed Rate Mortgages

With some extreme reports of interest rates going up to 8% by the end of 2012, borrowers are asking themselves whether now is the time to switch to a fixed rate deal. Read more

Offers of Help to First Time Buyers in a Subdued Market

Banks and building societies are predicting a pretty slow mortgage market for the remainder of 2010. The Council of Mortgage Lenders announced that just over £13 billion had been lent in the first half of the year but were not expecting any increases in the second half. Read more

Yorkshire Building Society Launches Two New Mortgages

The Yorkshire building society has launched a new three year fixed rate mortgage at 3.99%. which then reverts to 4.99% which is the northern based building societies standard variable rate (SVR). Read more

Are Lenders Really Helping First Time Buyers

Every since the credit crunch back in 2008, first time buyers have been left out in the cold as banks and building societies are looking to recupe their costs and move away from more risky lenders.

Mortgage providers are now realising that this segment of the market needs help and can be very profitable if approached in the right manor.

A number of lenders like the Co-operative, Post Office and Yorkshire building societies have recently launched 90% loan to value (LTV) mortgages to tap into these customers.

Back in July, the Yorkshire building society launched its market leading fixed rate 4.95% mortgage for borrowers with only a 10% deposit. At the same time the building society launched a three year version priced at 5.69%, again at 90% loan to value (LTV).

Tom Girling, a product manager the Yorkshire Building Society said: “At the Yorkshire, we’re trying to help as many people as possible obtain a mortgage – and offering fixed-rate loans to borrowers with a 10 per cent deposit is just one of the steps we have taken,”

Whilst lenders are trying to attract first time buyers onto the market, the reality is that many get turned down when they apply. According to one inside source, at least one of the big six retail banks (Lloyds, Santander, RBS, HSBC, Nationwide and Barclays) turns down 90% of applicants.

Lenders use credit scoring systems to make decisions about on-boarding and these are weighted towards lower loan to value (LTV) in order to reduce the overall risk to the bank or building society.

Applying for a first time mortgage can also have a detrimental effect on would be borrowers credit history which can impact the ability to get a loan in the near future.

Too many searches in a short space of time may ring alarm bells for the next lender and may effect a first time buyers credit score. To add to the problem, many of these lenders also ask for a non refundable application fee which may be up to £200 which is lost if the application is rejected.

First time buyers may well be better off going to smaller lenders that specialise in 90% mortgages such as Dudley, Cumberland and Furness building societies to improve the overall chances of being accepted.

Andrew Montlake a mortgage broker at Coreco suggests using a good broker to improve first time buyers chances of being accepted “A good broker will know which lenders certain borrowers will be best suited to and – perhaps more importantly – which lenders that advertise a 90 per cent offering are likely to produce the goods within the required time scale,”

Those looking for a mortgage should ask for a quotation search to be carried out rather than a formal search, this way its not logged on a potential borrowers credit file.

Yorkshire 10 Year Fixed Rate Mortgage Offers

A new 10 year fixed rate mortgage product has been launched by the Yorkshire Building Society one of very few who are offering mortgages for such a long period of time. Read more

Some Stuck on Standard Variable Rates

2.3 Million borrowers are on their lenders standard variable rate. This can vary from leder to lender but the Yorkshire Building Society believes that this accounts for 30% of the UK mortgage Market. Read more

Yorkshire Bank 1 Year Fixed Rollover Mortgage

A brand new concept and mortgage product has been launched by the Yorkshire Building Society aimed at those nearing the completion of their loan and have a high percentage of equity in their homes. Read more

Small But Perfectly Formed – Barnsley Building Society

Barnsley Building Society has a long history dating back to 1853. Originally named the Barnsley Permanent Benefit Building Society, the society first operated form an office above a grocers shop before moving to larger offices . The Barnsley became incorporated under the Building Societies Act of 1874. Read more

Borrowers Attracted to Long Term Deals at Yorkshire Building Society

With base rates at an all time low many borrowers are looking to lock themselves into attractive rates for a substantial period of time. One of the benefits is the savings that can be made by only having to pay a single fee rather than a new fee each time a shorter term mortgage is agreed. Read more

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