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Skipton Cuts Rates Across Interest Only Range

24 August 2017

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Skipton Building Society is continuing its support of the UK housing market by reducing the rates on its interest only mortgage range. 

The residential interest only range provides 60%, 70% and 80% LTV products available to purchase and remortgage customers. 

The suite of products, which offers free valuations and standard legals for remortgages, now includes a fee free 2 year fix at 1.69% to 60% LTV and 1.43% to 70% LTV with £1,495 completion fee. The 5 year fixed range includes a fee free fix at 2.15% to 60% LTV. 

Kris Brewster, Skipton’s Head of Products, said:

“Since launching in June, the Interest Only range has seen strong demand, and it’s great that we’re able to continue to support our members by lowering the rates across the range.

“There’s no one-size-fits-all approach to lending, and it’s important to us that we have a range of competitive mortgages designed to suit our members’ individual needs. Reducing these rates means we can do just that while ensuring this type of product is only taken out by borrowers that have a defined exit strategy to repay the loan.

These rate reductions complement a renewed focus on the Society’s interest only offering, with Skipton in June enhancing its policy for interest only residential lending: 

  • The maximum loan for interest only of £500,000 has now been removed, with standard maximum loan limits now being applied. The Society will now also accept the following repayment strategies:
  • Sale of Mortgaged Property: The main residence can be used as the repayment vehicle when a minimum of £400,000 of equity exists within the property, providing the Sale of Property element is no greater than 50% LTV. If the overall interest only loan is above 50% LTV, additional repayment vehicles can be used in conjunction with Sale of Mortgaged Property up to 70% LTV interest only, 80% part and part.
  • Pension: Up to a maximum of 15% of the customers total projected pension pot is permitted, where the minimum projected value of the pension pot is £400,000.
  • A combination of repayment vehicles can be used subject to criteria.

For more information visit their website.

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