Comprising a variable rate, which is benchmarked or ‘tracked’ against the 3-Month US Dollar LIBOR Rate (USDL) plus a differential, for either four or seven years, the loans are 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. To illustrate this, the current pay rate for the seven year product will be 4.22%, although this rate will be re-set on 1 June (see Key Features below).
Jennifer Holloway, head of media relations, commented, “The Stateside mortgage has proven to be one of Skipton’s most popular, since its launch in 2001. With rates starting from 4.22%, these simple tracker products use the US Dollar Libor as its guide, rather than a UK index. As the former has been historically lower than its UK equivalent, brokers will find both the 4-year and 7-year options attractive for their customers.”
Key Features – Stateside tracker mortgages
- Two options:
USDL (currently 2.92%) + 1.30% fixed differential until 31 August 2012
Current rate 4.22%
USDL (currently 2.92%) + 1.40% fixed differential until 31 August 2009
Current rate 4.32%
- USDL rate set quarterly, on the first working day of March, June, September and December
- Revert to the Society’s residential SVR – currently 6.09% – after tracker period
- Available up to 95% LTV with free MIG/Higher Lending Charge 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 and payment holidays
- Minimum property value £25,000; maximum loan size £250,000
- £200 application fee – payable up front, non-refundable
- £399 completion fee – can be added to the loan
- Early repayment charges:
4-year product – 5% of loan until 31 August 2009
7-year product – 5% of loan until 31 August 2008, 4% until 31 August 2010 and 3% until 31 August 2012
