This means, based on an £80,000 repayment mortgage, borrowers could make initial monthly payments of just £379, over a 25-year term.
Comprising of a variable rate, which is benchmarked or ‘tracked’ against the 3-Month US Dollar LIBOR Rate (USDL), plus a differential of 1.85% for five years, the loan is repayable by the borrower in exactly the same way as any other UK mortgage, in GBP Sterling - therefore avoiding the complication of dealing in a foreign currency. USDL has historically held at a lower rate than UK Sterling 3-Month LIBOR, and will initially be set at 1.14%
Key features – Stateside Tracker Mortgage
- USDL (currently 1.14%) + 1.85% fixed differential for 5 years – current rate 2.99%
- USDL rate set quarterly, on the first working day of March, June, September and December
- Reverts to the Society’s variable rate from 30 November 2008 onwards, with 0.75% discount through Skipton’s concessionary Mortgage Discount Scheme (meaning a current pay rate of 4.74%)
- Available up to 95% LTV – with free MIG up to 90% LTV
- Free legal fees for remortgages (£250 cashback in Scotland) through Skipton Home Conveyancing Service
- Free accident, sickness and unemployment (ASU) cover for six months
- Flexible benefits – daily interest, overpayments and payment holidays
- £395 completion fee – can be added to the loan
- Early redemption fee of 5% to 30 November 2008
- Interested customers should call 08457 171 777 or call into their local Skipton branch for further information
Jennifer Holloway, head of media relations, commented, "If history repeats itself, the US $ Libor rate will remain lower than the UK’s base rate, which in turn will mean that Stateside borrowers continue to benefit from a low rate. This product has proved very popular with the more financially aware borrowers in the past, who understand the product’s features, and we predict that it will do so again."
