Skipton Building Society  

Skipton unveils new range of broker-only mortgages

Skipton unveils new range of broker-only mortgages

Skipton Intermediaries has launched five intermediary-only mortgages including a two-year tracker free of early repayment charges (ERCs). 

Two of the products have had their interest rates reduced by 1 basis point since the launch on 12 April.

These two deals are new-build purchase mortgages, comprising a two-year fixed rate at 2.55 per cent to 90 per cent loan to value (LTV) with £500 cashback, and a five-year fix at 2.78 per cent to 90 per cent LTV with £1,000 cashback.

The ERC-free, two-year base rate tracker for purchases and remortgages is offered at 1.29 per cent to 60 per cent LTV, while two-year residential fixes are offered at 1.91 per cent to 70 per cent LTV, with a £1,995 fee for purchasers, and a fee-free 2.03 per cent to 60 per cent LTV for those wishing to remortgage. 

All five products offer free valuations.

The provider says brokers making use of any of these products will also benefit from a preferential underwriting service and the ability to extend client offers for up to 12 months.

Provider view

Paul Darwin, director of intermediary relationships at Skipton Intermediaries said: “Skipton recognises the importance of new-build for both first-time buyers and home movers, so we’re delighted to announce the release of these two keenly priced, high loan-to-value (LTV) intermediary exclusive fixed rates. They will both help borrowers on to the housing ladder and help realise their dreams of home ownership, while also providing a cashback to assist with those initial costs associated with the move.

“We’ve created these intermediary exclusives after listening and talking to our supporting brokers. They provide additional choice of product type, product term and cashback to our core range, and with limited tranches of funds available we expect them to be very popular.”

Adviser view

David Hollingworth, associate director of communications at Bath-based mortgage broker London and Country, said: “Skipton is very clear in its support of mortgage advisers, and intermediaries are key distribution partners for the mutual. Its commitment is illustrated by the fact it will produce exclusive product options if it thinks there is a gap or it can add value to the core range.

“That’s demonstrated in its new-build proposition, which Skipton has done a great job of developing. The exclusive new-build products are on offer to as much as 90 per cent LTV, and although the rates may not be the lowest on the market, the lack of fee plus cashback of as much as £1,000 adds value and will appeal to homebuyers dealing with all the costs of buying. It also offers the chance to extend mortgage offers by a further six months, recognising the longer timelines that can apply to new build.”

Charges

All fee-free except the five-year residential fixes at 1.91 per cent to 70 per cent LTV, which has a £1,995 fee and a £995 fee on the two-year base rate tracker.

Verdict

This appears to be a solid and flexible product range that is supportive of the mortgage broker market.