MortgagesSep 17 2014

Skipton slashes 2-year lending rates in bid to preempt BoE rate cut

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ByMi Zhang

Skipton Building Society has launched a range of residential two-year fixed mortgages, with rate reductions by up to 0.4 percentage points.

The lender has unveiled the products in the expectation they will prove popular with homeowners looking to fix their mortgage repayments ahead of a possible rate rise by the Bank of England.

The new range offers a number of different fixes, from a two-year fix at 1.92 per cent interest rate for a 60 per cent loan-to-value purchase (with a £195 application fee and a £800 completion fee) and a two-year fix at 4.19 per cent interest rate for a 90 LTV (attracting no application or completion fee).

Another two-year fixed mortgage for 90 per cent LTV (with a £195 application fee and a £800 completion fee) has seen one of the most significant interest cuts, from previously 4.29 per cent to current 3.89 per cent. Similarly, the two-year fixed product with 85 per cent LTV (£195 application fee and a £300 completion fee) has also experienced a 0.4 percentage point interest rate cut to 2.99 per cent.

For products with a £195 application fee and a £300 completion fee, the reduced rates of 75 per cent LTV and 85 per cent LTV are currently 2.34 and 2.99 respectively.

For products with no application or completion fee, the newly reduced rate of 75 per cent LTV and 85 per cent LTV are 2.76 and 3.23 per cent respectively.

Kris Brewster, head of products for Skipton Building Society, said: “We’re pleased to offer this new product range, which offers fee and rate options to suit a number of different borrower requirements. We are continuing to lend strongly, in line with our commitment to doing everything to help borrowers, and the ongoing popularity of our products is a reflection of that.”

Provider view

Mr Brewster said: “Customers are already enjoying peace of mind knowing that their mortgage payments will not increase for a fixed period, no matter what happens with the Bank of England base rate. We have now made these products even more attractive by introducing interest rate reductions on our two-year fixed rate mortgages. As we strive to offer our customers best value products we are constantly monitoring the marketplace and adjusting our products and interest rates to make sure they remain attractive. These latest reductions ensure they remain among the best value available as we continue to lend strongly in line with our commitment to helping people to achieve their homeownership aspirations.”

Adviser view