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Skipton reveals capped rates
2 August, 2007
Skipton Building Society has launched a range of capped rate mortgages.
The three-year Base Rate tracker capped mortgage has an initial rate of 6.09% with a 6.34% cap, whilst the five-year Base Rate tracker capped mortgage, has a rate of 6.14%, and is capped at 6.39%. This means 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 £665 and £668 respectively.
Colin Dale, head of lending at Skipton Building Society, commented: “The markets are certain that the Bank of England Base Rate will reach 6%, with some pundits suggesting that the rate rises won’t stop there. That said, there will come a time when rates have peaked and begin to fall again, which is why our Base Rate tracker capped products are the answer. Whatever the economic climate, borrowers have the security of knowing the maximum rate they will have to pay and the luxury of seeing their payments decrease when rates come down.
“The number of fixed rate mortgages currently on offer far outweighs capped rate products. But as speculation grows regarding when interest rates will peak and fixes become more over-priced, products like our capped rate deals will really come into their own and for that reason, as well as the great rate, we expect them to grow in popularity.”
Key features – three- and five-year Base Rate Tracker Capped Mortgages
- 3-Year Base Rate Tracker Capped Mortgage tracks the Bank of England’s base rate + 0.34% for three years - current pay rate of 6.09%, capped at 6.34% for three years
- 5-Year Base Rate Tracker Capped Mortgage tracks the Bank of England’s base rate + 0.39% for five years - current pay rate of 6.14%, capped at 6.39% for five years
- Both products revert to the Society’s residential SVR - currently 7.14% - after product deal period
- 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