Skipton reduces rates for three-year fix

The rates have dropped from 5.29% to 5.14% - equivalent to initial monthly payments of just £593 for a £100,000 repayment mortgage over a 25-year term.

Jennifer Holloway, head of media relations at Skipton Building Society, commented, "No matter what the Bank of England's base rate is doing, there will always be brokers whose clients need a fixed rate mortgage - such as first time buyers or couples with young families who have to keep a tight rein on their finances. At 5.14 per cent, we expect to see a lot of interest."

Key features - New ThreeYear Fixed Rate Mortgage

* 3-Year Fixed Rate Mortgage - fixed at 5.14% to 30 September 2008

* Reverts to the Society's residential SVR - currently 6.09% - after fixed rate period

* Available up to 95% LTV with free MIG/Higher Lending Charge up to 90% LTV

* Free legal fees (through Skipton Home Conveyancing Service) and free valuation on all residential remortgage cases

* Free accident, sickness and unemployment (ASU) cover for six months

* Flexible benefits - daily interest, overpayments and payment holidays

* Capital repayments of up to 10% of the original loan allowed each year, without charge, within fixed rate period

* £100 application fee - payable upfront and non-refundable

* £299 completion fee - can be added to the loan

* Early repayment charge of 5% to 30 September 2006, 4% to 30 September 2007 and 3% to 30 September 2008