Launch Pad: Fixed-rate deals

Skipton Building Society has launched three limited edition, fixed-rate mortgage products, with one targeted at first and second-time buyers with small deposits.

The mutual’s two-year fixed-rate deal at 90 per cent loan-to-value has a rate of 3.99 per cent with a £499 completion fee. It replaces an previous deal for the same LTV at 4.19 per cent with a £195 application fee and a £800 completion fee.

Skipton has also launched a two-year fixed-rate deal for remortgage customers at 2.39 per cent, up to 60 per cent LTV, and a three-year fixed-rate deal at 2.78 per cent with the same LTV.

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Key features:

• All rates are fixed until 31 January 2016 for the two-year deals and 31 January 2017 for the three-year deals.

• Yearly overpayments of up to 10 per cent are permitted without charge.

• Products are available through the society’s Skipton Direct customer service centre, branches and intermediaries.

Kris Brewster, Skipton’s head of products, said: “We believe that offering attractive rates at 90 per cent LTV could be a real benefit for those who are able to save up to a 10 per cent deposit, especially as the rates are a lot lower than at 95 per cent LTV.

“It is a signal of the society’s ongoing commitment to helping first and next-time buyers.”

IFA Verdict

Andrew Montlake, director of London-based Coreco, said: “The 90 per cent mortgage is a good product and Skipton is right that we need more competition at this LTV. It has shown continued improvement in its products in the past few months. The remortgages are there or thereabouts, but there are better rates out there. It depends on whether the client wants to pay fees or not.”