MortgagesFeb 13 2013

Skipton cuts rates for BTL flat-rate and tracker mortgages

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The society has reduced the interest rate by 0.20 of a percentage point to 3.68 per cent on its two year BTL fixed rate up to 70 per cent LTV. It has also reduced the interest rate on its two-year fixed rate up to 75 per cent LTV by 0.30 of a percentage point to 3.88 per cent.

Skipton’s two-year base rate tracker up to 70 per cent LTV has been reduced by 0.24 of a percentage point to 3.60 per cent, and the same product up to 75 per cent LTV has been reduced by 0.34 of a percentage point to 3.80 per cent.

All of the products have overpayments of up to 10 per cent per annum allowed without charge, free standard legals and valuations available on all remortgage products, revert to its BTL mortgage variable rate, currently at 5.69 per cent.

These new products are available through the Society’s Skipton Direct customer service centre, branches and all intermediaries.

This comes after PMS members and appointed representatives of Sesame network were given access to a new, exclusive mortgage product from Skipton.

The three-year fixed-rate product is available at 4.89 per cent for loans up to 90 per cent LTV – making it ideal for first-time buyers or ‘next-time’ buyers affected by reduced equity in their homes. It is available for purchases and remortgages and carries no booking or completion fees. A free standard valuation and free standard legal fees are also available for remortgages.

The existing five-year fixed-rate exclusive product from Skipton, which is also available up to 90 per cent LTV, has been further improved with a rate reduction of 0.15 per cent to 5.09 per cent.

REACTIONS

PROVIDER VIEW

Kris Brewster, Skipton’s Head of Products, said: “We are delighted to take this further opportunity to reduce the rates on some of our buy-to-let two-year fixed and tracker products. Today’s reductions are a further signal of our intent to continue lending strongly during 2013.”

ADVISER VIEW

David Hollingworth, associate director of communications for London & Country Mortgages, said: “Skipton has kept quite fluid recently, so it has been re-pricing across the board like many others have. One of the things that stands out on the BTL rates is that it has got flat fees, so they have tended to play on that side of it rather than go down the huge percentage fee, so there is going to be some good value to be found there. Both the two-year fixed rates on BTL are pretty well placed, especially when you start looking at the fees package because they are also carrying freebies for remortgage as well.”

CHARGES

All of the products have an application fee of £245. The two-year BTL fixed rate to 70 per cent LTV, two-year base rate tracker to 70 per cent LTV and two-year base rate tracker to 75 per cent LTV all have a completion fee of £750. The two-year fixed rate to 75 per cent LTV has a completion fee of £1,250. The two-year BTL fixed rate to 70 per cent LTV and two-year fixed rate to 75 per cent LTV have an early repayment charge of 3 per cent until 28 February 2014, then 2 per cent until 28 February 2015. The two-year base rate tracker to 70 per cent and 75 per cent LTV have an early repayment charge of 1 per cent of capital repaid and, after the product end date, interest to the end of the month, for two years.

VERDICT

Skipton Building Society has been making great strides and these price movements only go to show that they have got appetite to lend this year and intend to carry on from last year’s work. They are not just focusing wholly in on the low LTV side of things so again they are looking to have a broad offering.