Skipton Building Society has lowered rates on two and five-year fixes for home purchases and remortgages at varying loan to values.
Discounted purchase products include a two-year fix at 1.09 per cent to 60 per cent LTV with a £995 fee and a 1.79 per cent rate to 80 per cent LTV fee free.
A five-year fix is also available at 1.89 per cent to 60 per cent LTV with a £1,995 fee.
For those wishing to remortgage, products include a five-year fix at 1.90 per cent to 60 per cent LTV.
All products come with a free standard valuation on purchases and remortgages. The latter also has the benefit of free legals.
The reductions came a mere two days after the lender re-introduced its two-year discount mortgage range.
Highlights of the range include a fix for borrowers with a 15 per cent deposit priced at 1.75 per cent, and 2.25 per cent at 90 per cent LTV. Both products come with a £995 fee.
Products in the discount range are also available for purchases and remortgage.
Early repayment charges of 0.5 per cent for two years of capital repaid then interest to the end of the month.
In August, the mutual launched a refreshed range of fixed rate buy-to-let products with interest rates lowered on certain products by up to 0.50 of a percentage point.
Skipton’s rate reductions, of up to 0.38 per cent, are targated at first-time buyers and those looking to remortgage. The mutual described the deal as offering “great choice to suit all needs.”
Kris Brewster, Skipton’s head of products, said: “In reducing our mortgage rates on this range, we’re really showing our support to help get the country moving and enable more people to progress on the housing ladder, whatever rung they may be on.
“Today’s news is great for borrowers, as our mortgage rates continue to fall and our range of products competitively sit in the national best buy tables. With rates reduced by up to 0.38 per cent, there really are some great deals to be had for people looking to buy or remortgage, and some great choice to suit all needs."
Commenting on the five-year fix at 1.89 per cent to 60 per cent LTV, Dominic Basilea, director at St Albans-based Aqua Wealth Management, said: “It all depends on the size of the loan. The product may be good for individuals looking to borrow more than £250,000 but those wishing to borrow less could benefit from a fee free product – albeit with a slightly higher rate of interest.”
“I have processed more five-year fixes than two-year fixes recently because of how low the rates are at the moment and the difference between two and five-year fixes is less than a percentage point. The question for the future is, how low can rates go? I think there is a greater risk of interest rates going up over the short term than down. For first-time buyers who do not have a lot of disposal income, a five-year fix makes sense.”