The Derbyshire Building Society merged with the Nationwide (which is the world’s biggest building society) on the 1^st December 2008. Before this merger it was the ninth biggest building society in the UK with assets totaling £7.1 billion in December 2007.  Presently it has 50 branches throughout the UK. They have a cliental of 14 million people and are based in Duffield in Derbyshire. Because they work with the Nationwide, the Derbyshire Building Society are allowed to provide identical mortgages which offer their customers the following benefits.

1. Sole use of 90% Loan to Value (LTV) mortgages for customers with main FlexAccounts at the Nationwide
2. There are no concealed fees
3. An entitlement to make over or underpayments (although conditions do apply depending on what type of mortgage you have)

Due to the fact that mortgages offered are products of the Nationwide any applications made will be handled by the Nationwide and not at Derbyshire Building Society branches.

The Derbyshire Building Society provide fixed rate and tracker rate mortgages.

Fixed rate mortgages

A fixed interest rate mortgage gives you peace of mind as you will know exactly how much your payments will be per month.  The interest you pay stays the same during the agreed upon length of time. No matter what happens to Bank of England interest rates, your mortgage repayments stay the same. You are allowed to make overpayments of up to £ 500 each month without incurring a penalty. Should you alter the mortgage you have, before finish of the agreed upon fixed term, then you will be charged an early repayment fee. When the fixed rate term comes to an end then your interest rate charges will return to the Base or Standard Mortgage Rate.

Here is an example of what’s available for a £70,000 loan on a property with a value of £400,000:

• For a TWO year fixed rate mortgage the initial rate of interest presently would be 2.64%
• Increasing to the SMR which is presently 3.99%
• Fees that are payable are £499
• Early repayment charges apply for overpayments by £500 each month or if you leave your agreement before time
• Monthly payments would be of £318.98

• For a THREE year fixed rate mortgage the initial rate of interest presently would be 2.89%
• Increasing to the SMR which is presently 3.99%
• Fees that are payable are £499
• Early repayment charges apply for overpayments by £500 each month or if you leave your agreement before time
• Monthly payments would be of £327.95

• For a FIVE year fixed rate mortgage the initial rate of interest presently would be 3.89%
• Increasing to the SMR which is presently 3.99%
• Fees that are payable are £99
• Early repayment charges apply for overpayments by £500 each month or if you leave your agreement before time
• Monthly payments would be of £365.24

Tracker mortgages

Tracker rate mortgages are reliant on the Bank of England base rate. If this rate rises then so do your repayments but if it falls then your monthly repayments will also fall. You are allowed to make overpayments of up to £500 each month on some of their tracker mortgages and on a few others there is no limit as to how much you can repay. You are able to alter the mortgage you have to any of their fixed rate mortgages whenever you want during the agreement without incurring an early repayment fee. When the fixed rate term comes to an end then your interest rate charges will return to the Base or Standard Mortgage Rate.

An example of their tracker mortgage for a £70,000 loan on a property with a value of £400,000 is as follows:

• For a TWO tracker mortgage the base rate differential is +1.94%
• The initial rate of interest presently would be 2.44%
• Increasing to the SMR which is presently 3.99%
• Fees that are payable are £499
• Early repayment charges apply for overpayments by £500 each month or if you leave your agreement before time
• Monthly payments would be of £311.92

The above examples are the same as on offer from the Nationwide as the Derbyshire Building Society mortgages are from the Nationwide and are dealt with by the Nationwide rather than at a local branch of the Derbyshire Building Society.