Skipton overhauls fixed-rate range

The Skipton Building Society has announced that it is reforming its fixed-rate mortgage range, with changes to its two, three, five, seven and ten-year products.

There is now a range of interest rates on the lender’s provision of fixed mortgages, starting at 5.09 per cent on its two-year options for mortgages up to 95 per cent loan-to-value (LTV).

The highest rate set in this selection of offers is 5.39 per cent, for the three and five-year products when they are taken at up to 95 per cent LTV.

Following the fixed-rate period on all of these products, they will revert to the lender’s standard variable rate, which is currently 6.39 per cent.

All those customers who take out a mortgage at between 90 and 95 per cent LTV will be charged a higher lending fee and early repayment charges also apply.

There are flexible benefits on these products, such as daily interest, overpayments and payment holidays and capital repayments of up to ten per cent of the original loan are allowed each year within the fixed-rate period.

Colin Dale, head of lending at Skipton, said: "No matter what the Bank of England’s base rate is doing, the majority of borrowers are still looking to secure their rate by choosing a fixed-rate mortgage.

"They are particularly popular with first-time buyers or couples with young families who have to keep a tight rein on their finances."