Skipton launches “strong” mortgage range
All products in the new range will revert to a new mortgage reversion rate of 5.49% for residential or 5.69% on buy-to-let which is higher than its previous reversion arrangements.
Highlights from the range include a 2-year fixed rate to 60% loan to value at 2.69%; a 2-year fixed rate to 85% LTV at 4.18% for purchases only; a 5-year fixed rate to 75% LTV at 3.98% for remortgages only and a 10-year fixed rate to 85% LTV at 4.79% for purchases and remortgages. All products have an application fee of £195 and completion fee of £800.
All new products will replace the society’s existing mortgage range and will be available via through all intermediaries, its Skipton Direct customer service centre and the branch network.
Kris Brewster, the society’s head of products, said: “We’re delighted to be able to provide such an attractive set of mortgages.
“To an extent the reductions we’ve made to some rates reflect the current market trend fuelled by factors including the introduction of the government’s new Funding for Lending Scheme.
“However we’re also signalling our continued commitment to enabling homeownership, in line with our original mutual ethos, throughout the rest of this year and beyond.
“We’ve continued to punch above our weight in lending throughout 2012 after a significant increase in 2011. We intend to continue this positive trend into 2013 playing our part in returning the ailing mortgage market to health.”
A spokeswoman for Skipton said its decision to raise the reversion rate was to “future proof against interest rate rises”.
She said: “We feel the new mortgage reversion rate is more of a reflection of where the interest rate environment is going to be and is necessary to maintain competiveness across all our products.”
Ben Thompson, managing director Legal & General Mortgage Club, said:
“The Funding for Lending Scheme has been gathering some healthy momentum across the market over the last couple of months, with some 30 or so lenders now actively participating in the scheme.
To date it has been a little disappointing that the main impact thus far has been incredibly cheap pricing for the lowest risk borrowers. Skipton has just launched strong products to these borrowers however it is great to see some competitive pricing also at higher LTVs.
“This arguably brings more tangible benefit and upside to the wider housing market so Skipton should be congratulated in this regard.
“It is also interesting to note their longer term fixed rate products. Logic dictates that these products ought to sell quite well to certain borrowers so it will be interesting to see how successful these products are.
“It is good to see more product choice for more potential and existing borrowers, as well as keen pricing, this is more in keeping with what the market needs right now and I hope we see more of this in weeks and months to come, as the lowest risk lending becomes overly crowded and commoditised.”