Skipton cuts fixed mortgage rates again

Skipton cuts fixed mortgage rates again

Skipton Building Society has dropped its rates for residential and buy-to-let mortgages by up to 0.5 per cent, in the latest round of rate cuts.

As of today, the building society is offering two-year fixes for residential mortgages at 3.5 per cent to 75 per cent loan-to-value (LTV) and 3.79 per cent to 90 per cent LTV.

Its five-year fixes are now priced 4.15 per cent to 75 per cent LTV and 4.29 per cent to 90 per cent LTV. There are no completion fees on these products. 

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Buy to let owners can access additional borrowing at 3.64 per cent to 75 per cent LTV for a two-year fix, and 4.39 per cent to 75 per cent LTV for a five-year fix, with no completion fees.

New three year fixed rates have also been introduced for both residential and buy-to-let customers. A new 3-year fix has also been introduced.

The new fixes represent price drops of up to 0.50 per cent on Skipton’s previous loan rates in an effort to attract and maintain mortgage customers. 

“Whether home owners are looking to make improvements to their property or need the capital for other purposes, Skipton has a range of additional borrowing products available, with no application or completion fees to pay, providing you are an existing mortgage customer,” said Kris Brewster, Skipton’s head of products.

“We have made additional borrowing even attractive by lowering rates on our range of fixed rate products.”

Last week, Skipton announced new rate cuts to its suite of buy-to-let (BTL) and Help to Buy loans. A two-year BTL loan is now available at 1.99 per cent on a 60 per cent LTV, and a three-year fix to 70 per cent LTV was repriced at 2.69 per cent, both with fees of £995. 

The latest round of price cuts have left advisers hopeful that this signals an overall trend in the mortgage sector. 

"If Skipton has dropped their rates I’d imagine the other lenders will probably follow,” said independent financial advisers James Munro, of 2Plan Wealth Management.

“If one of the lenders sets a precedent they’re obviously trying to get extra lenders in by dropping their rates so if they get an influx of borrowers then the other mortgage lenders might follow.”