Tracker “fantastic” from Skipton

Building society Skipton has announced the launch of a new tracker mortgage today, claiming that it offers borrowers a “fantastic rate” on their mortgage.

The mortgage will track for three years at 0.25 per cent above the Bank of England base rate – currently 4.75 per cent – is capped at 5.5 per cent and available at up to 95 per cent loan to value (LTV), with no higher lending charge up to 90 per cent LTV.

After the opening three-year period the package, which has a £449 completion fee, will revert to the lender’s standard variable rate, which is currently 5.89 per cent.

According to the building society, the deal’s current rate equates to monthly payments of £569 for a £100,000 mortgage over a 25-year term.

“We are continually developing our extensive range of great mortgages and this one definitely ticks all the boxes with a fantastic rate, at 4.75 per cent, a low cap, at 5.50 per cent and no application fee,” said John Goodfellow, chief executive at Skipton.

“We are expecting it to be a popular option, especially for those borrowers, such as first-time buyers or couples with young families, who have to keep a tight rein on their finances.”

As well as affordability, Skipton claims that its new mortgage also offers a degree of flexibility, as it includes daily interest, overpayment and payment holiday features.