It will also reduce rates of select residential, BTL, new build, and government scheme products
Skipton Building Society has announced changes to its mortgage product range, with reduced rates and new products available immediately.
The lender has launched a new range of three-year fixes, alongside rate reductions across residential, buy-to-let, new build and government scheme product ranges. It will withdraw select residential fixes.
The mutual also extends end dates to December on selected residential and buy-to-let products and to March on selected new build and government scheme products.
Commenting on the latest product changes by Skipton, brokers asked by news agency Newspage said three-year fixes could soon become more popular with borrowers.
“In the current climate, three could be the new two for many borrowers as three-year fixes come in slightly cheaper and don’t lock you in for as long as a five-year fix,” commented Gary Bush, financial adviser at MortgageShop.com.
Scott Taylor-Barr, financial Adviser at Barnsdale Financial Management, said it was interesting to see the three-year deal “making a return out of the cold.”
“Recently, it’s been a very binary choice for many between a two-, five- or 10-year fixed rate, with many lenders offering no deals in between these periods,” he pointed out. “With many people uncertain of the next few years, they are struggling to decide between the shorter-term two-year deals and the medium-term five-year deals, so a three-year option fits in with allowing this group to have a goldilocks option that sits in the middle of these two extremes.”
Emma Jones, managing director at When The Bank Says No, agreed, saying that “three years seems to be a ‘sweet spot’ for when clients believe things will be more settled in the market.”
“Nobody knows, though, so anyone concerned about managing payments should consider longer-term options,” she added. “On the whole, though, it’s positive to see further rate reductions. Let’s see what the rest of the week brings.”
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