Skipton launches competitive low-deposit mortgage

Skipton Building Society is further enhancing its help for first and next-time buyers struggling to raise large deposits in order to purchase homes.

The Society is launching one of the most competitive 2-year fixed rate deals available, charging just 5.99% interest coupled with low fees. This represents a reduction of up to 0.50% on the existing deals and demonstrates Skipton's commitment to helping people onto the property ladder for the first time, as well as helping borrowers who are looking to move up to the next rung

For the past year, the Society has been one of the only providers to offer solutions for borrowers with smaller deposits, and is replacing its existing offerings (a two-year fixed rate deal at 6.49% through all channels and an exclusive offered in collaboration with its estate agency subsidiary Connells Group at 6.19%) with this cracking new product which is available from the Society's branches and Skipton Direct contact centre, and via selected intermediaries.

Key new product features

2-year fixed rate at 5.99%;
Fixed until 31/07/13;
Application fee £195;
Completion fee £0;
Early repayment charges until 31/07/13: 3% of capital repaid plus interest to the end of the month;
Free legals and valuations for remortgage customers;
Overpayments of up to 10% per annum allowed during product term.

This new product complements Skipton's existing range of fixed rate and tracker mortgages, which offer dependable good value, choice and flexibility - catering for a range of fee preferences at LTVs ranging from 60% to 90%; over terms of 2 to 5 years.

Skipton's Head of Products, Kris Brewster, said: "As a successful mutual building society, Skipton is committed to helping people achieve their homeownership aspirations.

"This new 95% LTV product follows on from our re-launch back into this market last year and is a big reduction on the previous products we had available. This demonstrates our commitment to helping borrowers in this segment and is the latest in a series of innovative solutions we have offered over the past 12 months, to help borrowers overcome some of the continued challenges posed by the financial markets and economy."

Anyone wishing to find out more about our new mortgage range can visit the Society's website at skipton.co.uk/mortgages.