Including a reduced cap, increased discounts and a new attractive initial rate borrowers choosing this mortgage will currently pay only 4.64% for their first year, along with the guarantee that their rate will not exceed 4.99% until 31 October 2008 – one of the lowest capped rates on the market.
Jennifer Holloway, head of media relations at Skipton Building Society, commented, “Earlier in 2005, market predictions were that the next rate movement could be up, but it was, of course, down. However, as minutes of the MPC meeting revealed a split of opinion on the recent rate cut, consumers could be forgiven for being unsure what the future may bring for UK rates. The benefit of Skipton’s 3-Year Capped Rate Mortgage is, whatever happens, borrowers can budget safe in the knowledge that the highest their rate will be for the next three years is only 4.99%, whilst enjoying the benefit of reduced payments should UK rates fall.”
Key features – New 3-Year Capped Rate Mortgage
· Capped at 4.99% until 31 October 2008
· 1.25% discount in year one – initial pay rate 4.64% – followed by 0.80% discount in year two
· In year three, reverts to the Society’s residential SVR – currently 5.89% – or the capped rate of 4.99%, whichever is lowest
· Available up to 95% LTV with no Higher Lending Charge (MIG) up to 90% LTV
· Free legal fees (through Skipton Home Conveyancing Service) and free valuation on all residential remortgage cases
· Free accident, sickness and unemployment (ASU) cover for six months
· Flexible benefits – daily interest, overpayments and payment holidays
· Capital repayments of up to 10% of the original loan allowed each year, without charge, until 31 October 2008
· No extended tie-in – early repayment charge of 4% to 31 October 2006, 3% to 31 October 2007 and 2% to 31 October 2008
· No application fee and a £399 completion fee – can be added to the loan
