A total of four seven year fixed rate mortgages have been introduced, with rates varying from 5.49 per cent to 5.79 per cent and completion fees at either £599 or £1999 and a maximum loan of £250,000. Loan to value (LTV) is offered at either 75 per cent or 95 per cent.
Four ten year fixed rate mortgages are also offered, with rates also ranging from 5.49 per cent to 5.79 per cent. Again completion fees are either £599 or £1999 and LTV is either 75 per cent or 95 per cent.
After the fixed rate period ends, all mortgages revert to the society’s residential standard variable rate, which is currently 6.64%. A higher lending charge is applicable for loans between 90 - 95 per cent LTV and there are flexible benefits such as daily interest, overpayments and payment holidays. Early repayment charges for the seven year mortgages are five per cent to 30 June 2008, four per cent to 30 June 2009, three per cent to 30 June 2012 and two per cent to 30 June 2014. For the ten year mortgage, it is five per cent to 30 June 2009, four per cent to 30 June 2011, three per cent to 30 June 2013, two per cent to 30 June 2015 and one per cent to 30 June 2017. There is no application fee on any product and all completion fees can be added to the loan.
Colin Dale, head of lending at Skipton, commented, “In today’s climate of rising interest rates, for many borrowers it’s all about knowing exactly how much their monthly repayments are going to be, so fixes and capped rate products are the order of the day. By taking longer-term fixed rate mortgages, such as our seven or ten year deals, homeowners can take a break from watching rates and relax knowing, whatever happens, they needn’t think about their loan for a good while yet.”
