A journalist at This is Money / Mail Online is working on a piece about smaller regional building societies and when/why borrowers should consider getting a mortgage with one. They're appearing at/near the top of a lot of the rates tables at the moment which is unusual - eg:
Family BS 2.44% £1,349 fee (2 year)
Skipton BS 2.74%, no fee (2 year)
Skipton BS, 2.69%, no fee (5 year)
Yorkshire BS 2.45%, £1,495 fee (2 year)
Yorkshire BS 2.69%, no fee (2 year)
Cambridge BS 2.54%, £199 fee (2 year)
Leeds BS 2.71%, no fee (2 year)
Leeds BS, 2.58%, no fee (5 year)
Yorkshire BS, 2.55%, £1,495 fee (5 year)
Cambridge BS, 2.69%, £199 fee (5 year)
Ipswich BS 2.45%, £1,358 fee (2 year)
Yorkshire BS 2.74%, no fee (2 year)
Yorkshire BS 2.70%, £245 fee (2 year)
Furness BS, 2.99%, £250 cashback (2 year)
The Nottingham 2.82%, £999 fee (2 year)
Skipton BS 3.08%, no fee (2 year)
Skipton BS, 3.31%, £1,000 cashback (5 year)
I think a lot of borrowers might not consider one of these lenders, especially if they're not using a broker, as they might not have heard of them of prefer to stick with a well-known high street name. So I'm looking to explain:
- Why they are suddenly offering better rates than some big banks - how are they able to do this?
- Are there any restrictions on who can get a mortgage with a regional building society - are there any that say you must come from the area?
- What the pros and cons are compared to a big four bank?
And equally, looking at the rates above a lot of the five years are now cheaper than two - we did report on this when the trend first started, but keen to get an update on how widespread it now is and whether it will continue.
Any comments would be appreciated by end of today.