This means, based on an £80,000 repayment mortgage, borrowers would make fixed monthly payments of £405 for two years.
The mortgage is fixed until 30 June 2005, when it reverts to the Skipton’s variable rate which is currently 5.70%. There are free legal fees for remortgages (£250 cashback in Scotland) and the flexible benefits of daily interest, overpayments and payment holidays. The following year, borrowers would be able to take advantage of the Skipton’s 0.75% customer loyalty discount.
Commenting on the new mortgage, Jennifer Holloway, head of corporate communications, said, "In stark contrast to many other lenders, instead of withdrawing our best fixed-rate mortgages in anticipation of rising interest rates, we're launching one of the most attractive deals on the market. But the great deal lasts longer than just two years; after this time, borrowers will receive a 0.75% discount on Skipton's variable rate for the remainder of their mortgage. Based on our current rates, that would be equal to just 4.95%."