The lender's latest residential mortgage-backed securitisation, Brass No.2, is being marketed among investors including banks, pension and insurance funds.
It follows Brass No.1, launched last year, which raised £400m and is secured on low-risk owner-occupied mortgages.
Chris Parrish, group treasurer, said: “We did our first securitisation deal last year and we gave an indication that we will be in the market once a year with a public size transaction. We want to keep our funding channels open.
“Clearly Funding for Lending is very attractive and we will make use of it but we also want to maintain a presence in the markets. We will be doing some of each."
As yet, the amount which Yorkshire intends to draw down from the Funding for Lending Scheme has not been disclosed.
Parrish added Yorkshire currently funds about 90% of its lending with retail deposits, compared with a traditional 80/20 retail to wholesale split, and its securitisation plans will help rebalance this.
“This gives us funding diversity,” he said. “During the credit crisis we were more focused on retail funding so wholesale funding dropped to around 10%. This is re-addressing that.”
