“CAP THAT” SAYS SKIPTON
Borrowers taking this mortgage will receive a 0.85% discount for the first two years, along with the guarantee that, whatever happens to UK interest rates, their rate will not exceed 5.75% before 28 February 2008.
Jennifer Holloway, head of media relations at Skipton Building Society, commented, “If market predictions are correct and the UK is nearing a peak in interest rates, borrowers with tracker mortgages could see their repayments decrease in 2005. The benefit of Skipton’s 3-Year Capped Rate Mortgage is that, if predictions are wrong and rates move upwards, borrowers have the safeguard of knowing their rate won’t exceed 5.75%.”
Key features – 3-Year Capped Rate Mortgage
· Capped at 5.75% until 28 February 2008
· 0.85% discount in years 1 and 2 – initial rate 5.24%
· Reverts to the Society’s residential SVR – currently 6.09% – in year 3 (or 5.75%, whichever its lowest)
· Available up to 95% LTV with free MIG/Higher Lending Charge up to 90% LTV
· Free legal fees and free valuation through Skipton Home Conveyancing Service 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, until 28 February 2008
· £399 completion fee – can be added to the loan
· Early repayment charge of 4% to 28 February 2006, 3% to 28 February 2007 and 2% to 28 February 2008
