The new product, launched today, combines the benefits of no fees, a competitive rate and longer-term monthly payment certainty.
Key new product features
- Interest rate: 5.85%;
- Fixed until: 30/11/2021;
- No product fee;
- Early Repayment Charge (ERC): 6,6,6,6,6,5,4,3,2,1% of capital repaid plus interest to the end of the month, during the product term;
- Free legals and valuations available for remortgages;
- Overpayments of up to 10% per annum allowed without penalty;
- Products revert to Bank Base Rate (currently 0.5%) plus 4.45%.
- Maximum LTV level for this product is 85%
Skipton's Head of Products, Kris Brewster, said:
"Base Rate has been at an historic low of 0.5% for an unprecedented 28 months now and many borrowers have therefore become used to lower-than-ever mortgage payments. These low interest rates are unlikely to be sustainable in the long term, though, despite the current turmoil in the market.
"We believe that Base Rate is unlikely to rise until at least next year - and any increases after that will be incremental and slow. This means shorter term fixed and tracker deals might be the most cost effective for some types of borrowers at the moment.
"However, we think longer term fixes like this could offer an important alternative for those who are expecting to remain in their home over the longer term, who prefer to have payment certainty over a fixed term and value long term financial planning.
"10-year swap rates are close to their lowest levels ever, enabling us to offer a rate of 5.85% , which is a very cost effective proposition over a decade term for those customers suited to this kind of product
Skipton continues to step up its lending, having increased it fourfold last year, and today's product launch follows a range of other highly competitive deals, including the Society's lowest ever 2-year fixed rate deal at 2.48% up to 60% LTV and a 2-Year Base Rate Tracker up to 50% LTV at Bank Base Rate plus 1.48% (currently 1.98%).
The Society also recently introduced a number of criteria changes to further enhance its flexible and varied range of mortgages, and make them accessible to even more borrowers.
These include higher potential loan amounts up to 80% and 90% LTV and an extension of the period for which mortgage offers remain valid from 3 months to 6 months - as well as returning to lending on new build flats, up to a maximum 75% LTV.
This new 10-year fix is available both direct through the Society's Skipton Direct contact centre and branches, and via intermediaries.
