Skipton launches new base rate tracker capped mortgages
Borrowers unsure what the future holds for the UK’s interest rates can benefit from the two new capped rate mortgages, launched by Skipton Building Society.The new 3 and 5 Year Base Rate Tracker Capped Mortgages are both capped at 5.99% - meaning the maximum monthly payment a borrower would make during the capped period on a £100,000 repayment mortgage over a 25 year term would be £643.
Colin Dale, head of lending at Skipton Building Society, commented, “Our two new base rate tracker capped mortgages give borrowers the confidence in knowing that their interest rate will never go above 5.99%. This is coupled with the benefit that the rate will fall if, as predicted, we see future decreases in the base rate. Plus, the great starting rates definitely tick all the boxes for borrowers working within a budget.”
Key features – 3 and 5 Year Base Rate Tracker Capped Mortgages
3 Year Base Rate Tracker Capped Mortgage tracks the Bank of England’s base rate + 0.30% for three years – current pay rate of 5.55% and capped at 5.99% for three years
5 Year Base Rate Tracker Capped Mortgage tracks the Bank of England’s base rate + 0.35% for five years – current pay rate of 5.60% and capped at 5.99% for five years
At the end of the three or five years both products revert to the Society’s residential SVR – currently 6.64%
Both available up to 95% LTV with no Higher Lending Charge up to 90% LTV
Free legal fees (through Skipton Home Conveyancing Service) and free valuation on all residential remortgage cases
Flexible benefits – daily interest, overpayments and payment holidays
No extended tie-in – early repayment charge for the 3 Year Base Rate Tracker Capped Mortgage is 2% for the first 12 months and 1% for the subsequent 24 months. Early repayment charge for the 5 Year Base Rate Tracker Capped Mortgage is 2% for the first 24 months and 1% for the subsequent 36 months
No application fee on either product
£599 completion fee on both products – can be added to the loan