A Bradford-based building society has thrown down the gauntlet to the mortgage industry with another cut in its fixed-rate mortgage interest rates.

It is part of a move by Yorkshire Building Society to “significantly increase” its market share this year. The move is creating 35 new mortgage processing jobs at its head office on Rooley Lane.

Since January 1, the Yorkshire has cut its headline two-year fixed rate by 0.8 per cent compared to an average of 0.3 per cent from other leading lenders. It means that YBS now offers the best buy one and three-year fixed-rate products for up to 75 per cent of the property value and the best two-year rate at 60 per cent loan to value.

Ian Bullock, sales and marketing director, said: “We plan to significantly increase our market share during 2010 and these cuts are evidence of this.

“So far this year we have received over 141 best buy mentions in the national press for our mortgage products and with these cuts we expect to have many more. Compared to this time last year our lending is significantly higher and we expect this to continue throughout 2010.

“Our approach to mortgage lending remains prudent and we feel this is a sensible move given some of the early signs of confidence returning to the housing market. We use an affordability calculator which allows responsible borrowing so that those seeking a competitive mortgage are able to calculate their repayments in direct relation to their individual circumstances.”

The Yorkshire is currently waiting for official approval from the Financial Services Authority for its planned merger with the Chelsea, which has been supported by members of both societies.