The new three and five-year Base Rate Tracker Capped Mortgages are capped at 6.44% and 6.49% respectively - meaning the corresponding maximum monthly payment a borrower would make during the capped period on a £100,000 repayment mortgage over a 25 year term would be £671 and £674.
Colin Dale, head of lending at Skipton Building Society, commented: “Our two new base rate tracker capped mortgages have two clear benefits – they give borrowers the confidence in knowing that their interest rate will never go above 6.49% and the benefit that the rate will fall if we see future decreases in the base rate. Plus, the great starting rates definitely tick all the boxes for borrowers working within a budget.”
Key features of these new products include:
- The Three Year Base Rate Tracker Capped Mortgage tracks the Bank of England’s base rate + 0.44% until 30 November 2010 – current pay rate of 6.19% and capped at 6.44% until 30 November 2010.
- The Five Year Base Rate Tracker Capped Mortgage tracks the Bank of England’s base rate + 0.49% until 30 November 2012 – current pay rate of 6.24% and capped at 6.49% until 30 November 2012.
- At the end of the deal periods both products revert to the Society’s residential SVR – currently 7.14%.
- Both available up to 95% LTV with no Higher Lending Charge up to 90% LTV.
- Free legal fees (through Skipton Home Conveyancing Service) and free valuation on all residential remortgage cases.
- Flexible benefits – daily interest, overpayments and payment holidays.
- No extended tie-in – early repayment charge for the 3 Year Base Rate Tracker Capped Mortgage is 2% until 30 November 2008 and 1% until 30 November 2010. Early repayment charge for the 5 Year Base Rate Tracker Capped Mortgage is 2% until 30 November 2009 and 1% for until 30 November 2012.
- No application fee on either product and a £599 completion fee which can be added to the loan.
