The key features of the 85 per cent LTV product are a capped rate up to 6.50 per cent until 30 September 2007 with a discount off the variable rate – currently at 5.70 - for two years at a rate of 1 per cent with insurance, and 0.85 without.
The product comes with a free Mortgage Indemnity Guarantee and free legal fees for remortgages, or £250 cash back in Scotland.
For loans up to 95 per cent LTV, the rate is capped at 6.65 per cent until 30 September 2007 with a discount from the 5.70 SVR of 0.85 per cent with insurance, and 0.70 without. The product comes with a free MIG up to 90 per cent LTV.
All loans attract a concessionary discount scheme that starts in years three and four, with a 0.30 discount rate increasing to 0.50 in year five. The flexible benefits include daily interest, payment holidays and overpayments of up to 10 per cent of capital each year without charge within the redemption period.
Early redemption fees start at 5 per cent in year one and fall by one per cent each year over the period to one per cent.
Jennifer Holloway, head of corporate communications commented: “There is no doubt that homeowners are currently looking to take advantage of the lowest mortgage rates in the UK for a generation, whilst providing as much protection, and for as long as possible, against future rate rises. Skipton’s 5-Year Capped Rate loan offers such security whilst allowing borrowers to keep their costs to a minimum, thanks to the initial two year discount and the long term benefits of Skipton’s Mortgage Discount Scheme.”
