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Yorkshire BS to pull out completely from interest-only on Sunday

Yorkshire Building Society has confirmed that it is pulling out completely from interest-only on Sunday 25 March.

The change applies across all of its lending brands, which includes Barnsley Building Society, Chelsea Building Society, Norwich & Peterborough, Yorkshire and broker-facing brand Accord Mortgages, although interest-only mortgages will continue to be available for buy-to-let only from Accord.

But the mutual joins a growing number of lenders that have decided to pull out of interest-only which include Co-operative Group and Nationwide.

A Yorkshire Building Society spokesperson says: “The Yorkshire Building Society Group will stop interest-only lending to new customers, excluding buy-to-let, from 25 March 2013.

“We regularly review our mortgage proposition and the interest-only market has reduced considerably in recent months.”

London broker Coreco director Andrew Montlake, says: “It was interesting to note that this move was communicated on Budget Day, presumably in the hope that it would be passed over with other news, but this is another big blow to those who believe there is a place for interest-only.

“Given the positive news in the Budget with the announcement of the Help to Buy Scheme I hope that this negative news does not lead to more lenders who have already set a sensible interest only policy reviewing their stance yet again.”

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  • bob gore 22nd March 2013 at 9:50 am

    I better remain anonymous as I work for Accord but well said James !!

    I cannot afford champagne but will dedicate my first guinness of the weekend to you.

  • James Lindon-Travers 21st March 2013 at 11:01 am

    Clearly the author of the last comment didn’t have the balls to put his name to such drivel. True Accord’s credit scoring system is very tight but unless he/she has been on Mars for the last 5 years – there has been a financial crisis!The lender devises their scorecard to support their business needs and perhaps withdrawing from interest only will see an easing of their scoring. I suspect his/her cases fail due to poor data input. I shall be opening a bottle of champagne when anonymous ‘dabbler’ brokers like these leave the industry for good and save us from such moronic comments

  • Tim Lynch 20th March 2013 at 10:00 pm

    This is great news for brokers as I am sick of having to recommend this useless lenders products (Accord) as their market leading rates are coupled with the harshest credit scoring procedures and most shambolic underwriting process in the industry. Personally I will crack open a bottle of champers when they withdraw from lending altogether!