Comprising of a variable rate, which is benchmarked or ‘tracked’ against the 3-Month US Dollar LIBOR Rate (USDL), plus a differential of 1.87% for seven 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 1.12%.
Key Features – Stateside Tracker Mortgage
* USDL (currently 1.12%) + 1.87% fixed differential until 31 May 2011
* Current rate 2.99%
* USDL rate set quarterly, on the first working day of March, June, September and December
* Reverts to Society’s variable rate on 1 June 2011, with 0.75% discount through Skipton’s concessionary Mortgage Discount Scheme (current pay rate of 5.34%)
* Available up to 95% LTV with free MIG up to 90% – maximum loan £150,000
* Free legal fees (£250 cashback in Scotland), through Skipton Home Conveyancing
* Service and free valuation for remortgages
* Free accident, sickness and unemployment (ASU) cover for six months
* Flexible benefits – daily interest and payment holidays
* £100 application fee – payable up front, non-refundable
* £399 completion fee – can be added to the loan
* Early redemption charge of 5% of loan until 31 May 2007, 4% until 31 May 2009 and 3% until 31 May 2011
* Interested borrowers should call 08457 171777 or visit their local branch for further information, as this loan is only available directly from the Society
Jennifer Holloway, head of media relations, commented, "There are a number of reasons the US economy is in its current state, but what is bad news for many Americans has become good news for borrowers here in the UK. Our Stateside mortgage is a simple tracker product, using the US Dollar Libor rate as its guide, rather than a UK index. As US Dollar Libor is historically lower than its UK equivalent, the resulting rate is 2.99%, so I would urge everyone to get a slice of this American pie while it’s still hot."
