"Our borrowers have benefitted from strong growth in house prices over the last couple of years, earning them additional equity in their properties."
Skipton Building Society has launched a new low-rate mortgage range specifically designed to help existing borrowers at risk of payment difficulties, extending the support it already offers through the national Mortgage Charter.
Through the Mortgage Charter, Skipton already has a package of support for any borrowers struggling with their monthly mortgage payments - from offering temporary adjustments to their repayment schedule or by extending their mortgage term. Under the charter, these are temporary shorter-term adjustments, but Skipton says some customers who need greater financial certainty require access access to an alternative mortgage option to support them over the medium-term.
To tackle this, Skipton has created a two-year, low interest rate, member-only range.
The mortgage products will give any existing owner-occupied Skipton borrowers approaching the end of their current deal, and who will be financially stretched on current rates, the opportunity to bridge their payments by maintaining a lower interest rate for two years.
Despite offering fee-free options on all its ranges, over half of Skipton’s borrowers chose mortgages with a fee to help keep their monthly payments as low as they can. With this in mind, this bespoke range has a fee of 5% of the existing loan amount which can be added to the mortgage balance, in return for a lower interest rate.
Rates are available from 3.35% at 60% LTV, 3.39% at 75% LTV, 3.49% at 85% LTV, and 3.59% at 90% LTV.
Skipton’s CEO Of home finance, Charlotte Harrison, said: “Its crucial lenders offer as much support as we can to ensure borrowers remain secure in their own homes through these turbulent times, by looking at further opportunities to provide certainty and confidence in the ability to maintain payments.
“Signing the mortgage charter was just one step in us providing support, but we feel we can do more for our borrowers. It’s important we think differently, on what further support could be to make a real difference for our members who may be facing a future of financial difficulty due to the limited options on the market available to them.
“Our borrowers have benefitted from strong growth in house prices over the last couple of years, earning them additional equity in their properties. For those who are financially stretched, this is a good time to consider if they can make that equity work for them.
“We will always work directly with our borrowers to understand their personal situations and work with them on a solution that is most suited to them and their circumstances. This range of mortgages presents another option for our members – it’s not to say, that they will be right for everyone.
“We really encourage all homeowners to be aware of what help is available from their lenders. If they’re worried they’re going to get into financial difficultly please do reach out to your lender. The sooner a person gets into contact with their lender the more options they have available to them to help tackle the problem early.”
