Rates are fixed at 5.29 per cent for loans up to 75 per cent loan-to-value (LTV) and 5.39 per cent for loans up to 95 per cent LTV until 30 November 2016.
The product includes free legals and valuations on all residential remortgage cases and free higher lending charges (HLCs) up to 90 per cent LTV.
There are early repayment charges (ERC) starting at 5 per cent up to November 2008, reducing by 1 per cent every two years. The deal reverts to the society’s residential standard variable rate (SVR), currently 6.14 per cent, after the fixed rate period.
Skipton confirmed there would be no application fee, but included is a £499 completion fee that can be added to the loan. Capital repayments of up to 10 per cent of the original loan are allowed each year, without charge, within the ERC period.
Free accident, sickness and unemployment (ASU) cover will also be provided for six months with daily interest, overpayments and payment holidays allowed.
John Goodfellow, chief executive of Skipton Building Society, commented: “With the recent Base Rate increase introducing uncertainty in the mortgage market, fixed rate deals have definitely gained in popularity. For those seeking certainty over the longer term, our 10-year fix gives them all the peace of mind they need.”
Rod Murdison, proprietor of Murdison & Browning, said: “From a historical point of view the rate doesn’t sound bad, as within living memory interest rates were in double figures. This is being marketed at a good level. But one of the fears people have is that over a 10-year period their lives might change substantially and then they are stuck with the deal and have to pay redemption penalties. I think it will appeal to more cautious customers.”
