The rate will then revert to the society's variable rate (currently 5.70%) with 0.50% discount from year five onwards. Daily interest, overpayments and payment holidays are features of the mortgage and the redemption charge is 5% of the balance of the mortgage to 31 December 2007, with up to 10% capital repayments allowed, without charge, each year.
Jennifer Holloway, head of corporate communications at the Skipton, commented, “With interest rates at their lowest for a generation, the common viewpoint is that rates will rise again and it is widely predicted that they will have reached around 5.00% by the end of 2003. Skipton’s five-year fixed rate mortgage offers homeowners the peace of mind of knowing their repayments will not increase for the next five years, regardless of the level bank base rate reaches over this period.”
