by Mark Johnston
The Skipton Building Society has launched two new mortgages. Both home loans are five year tracker deals with differing rates depending on the size of a borrowers deposit.
Skipton Building Societies senior product manager, William Gill said: “We recognise the anxiety many borrowers feel amid continued market uncertainty and with the prospect that interest rates may start to rise.” He pointed out that customers should take advantage of the low base rate by choosing a tracker mortgages but the difference was that these products allowed their customers to swap to a fixed rate product when rates started to rise.
These are great products for those looking for flexibility in the mortgage whilst providing a competitive interest rate at base rate plus 2.99% for one loan and base rate plus 3.19% for the other. One has a £995 whilst the other has the fee built into the cost of the loan.
Skipton Building Society was founded back in 1853 and has grown since then to become the fourth largest building society in the United Kingdom. They have 105 branches up and down the country serving over 850,000 customers. The Skipton has always been an innovator in providing mortgage services to its members and has some great products.
As well as the options mortgages which is designed to offer the flexibility of a tracker and fixed mortgage rolled into one, the Skipton offers a solid range of tracker mortgages with a range of loan to value ratios.
First time buyers can take advantage of a 90% loan to value (LTV) which has a rate of 4.88. The tracker mortgage has a fee of £995 and works out at 5.1% APR. Unfortunately they don’t offer fixed rate mortgages with that require small deposits but they do have both a three and five year mortgage range with a loan to value of 75%.
The first is a three year fixed rate mortgage at 3.98% which at the end of the term will revert to their standard variable rate which is currently 4.95%. The loan has a £995 fee and a APR of 5%. The five year option is currently 4.78% with a cost for comparison of 5.1% as the arrangement fee is £995
The launch comes after the Skipton Building Society pulled its whole range of two year fixed rate mortgages from sale. At the same time they pulled a total of twenty seven mortgages which included all of its three year and five year loans which had a loan to value over 75%.
For those with existing lending with the building society, they allow their customers to take out additional lending to pay for such things as home improvements but these do have to meet affordability rules. Additional lending is charged at 4.45% above the bank of England base rate which is currently 0.5% but may rise. With the completion fee at £299 the overall APR is just 5.3%
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