Skipton Building Society has unveiled a fresh range of low interest rate mortgages, which start from 0.99 per cent.
The two year 0.99 per cent fixed-rate deal comes with a £1,995 fee and is available to purchases and remortgages with a 60 per cent loan to value.
Other offerings in the range are a fee-free two year 1.49 per cent fixed-rate deal to 70 per cent LTV and a fee-free five year 1.91 per cent fixed rate deal to 60 per cent LTV.
A number of five-year mortgages are also on offer, and fixed deals at 2.07 per cent, 2.17 per cent or 2.30 per cent depending on the fee. All are available on an 85 per cent LTV basis.
“Skipton’s clear message continues to be that we want to offer new and existing customers the most competitive rates and the best levels of service."In all cases, there are early repayment charges of 2 per cent falling to 1 per cent on the two deal mortgage, or 5 per cent falling to 2 per cent on the five-year fixes.
Over-payments of up to 10 per cent are allowed without penalties being incurred and all deals are available for purchases or remortgages.
Skipton is offering free standard legal checks and valuations for remortgages and free valuations on all new purchases.
Reactions
Provider view:
Kris Brewster, Skipton’s head of products, said: “This is certainly an historic moment for Skipton Building Society, the first time we have offered fixed mortgages below 1 per cent. By offering great value products, we are emphasising our commitment to help new and existing customers. Skipton continues to add value to its residential mortgage range with these new two and five year fixed term products.
“Skipton’s clear message continues to be that we want to offer new and existing customers the most competitive rates and the best levels of service to enable them to complete their purchase or remortgage in the quickest possible timescale. This complements our existing mortgage range, which aims to offer attractive deals to suit a range of circumstances.”
Adviser view:
Madeline Turner, mortgage and protection adviser at 3R Financial Services, said: "Clearly Skipton is offering these deals to increase its market share, which is fair enough. But for new homebuyers and those remortgaging it’s a great deal.
"A 0.99 per cent deal is bound to generate a lot of interest, which can only be good news for all concerned.”
Charges:
Fee of £1,995.
Verdict:
Lenders are falling over themselves to offer lower rates. Although there are fears of a property market slowdown there is still the need to cater for those borrowers, whose salaries have not kept pace with rising prices over the last few years, who need to either upsize or purchase for the first time. Obviously, and sensibly with expectations of a base rate rise later this year, the sub 1 per cent rate is only available on an LTV of 60 per cent.
