On a day set to be dominated by the Budget, Skipton Building Society has launched two new seven-year fixed-rate mortgages to its residential products.
The Society, in a ploy designed to appeal to those looking for more long-term security for their mortgage payments, has introduced 7-year fixed-rate deals at 2.40% to 75% LTV (with £995 fee), and a fee-free 2.65% to 85% LTV.
With the Bank of England’s base rate recently rising for the first time in a decade – from 0.25% to 0.5% – there is a growing desire from borrowers to opt for fixed-rate mortgages for the security and stability this provides.
Rates are also being reduced by 0.10% on Skipton’s residential 5-year fixed purchase products at 85% LTV, which begin at 2.14% with £1,995 fee and also include a fee free 2.35% rate.
Furthermore, the Society is launching a competitive range of 3-year buy-to-let and New Build products, with its New Build proposals including a variety of product, policy and service enhancements. These are tailored to offer new home buyers the ‘best possible experience’ and up support for the new-build market.
The New Build products, which all include free upfront valuations, are available as a 3-year fix at 2.49% to 90% LTV with £995 fee and a fee-free 3-year Tracker at 2.35% to 90% LTV. The New Build products are purchase only.
Meanwhile, there is a new buy-to-let range for purchase and remortgage customers, which includes a 3-year fix at 2.64% to 70% LTV with £495 fee, a fee free 2.92% to 75% LTV, and a 3-year Tracker at 2.55% to 75% LTV.
“Although bank base rates remain low, uncertainty remains high, so we are delighted to introduce these 7-year fixed rate mortgages which are likely to appeal to borrowers who prioritise stability and prefer to have certainty over their mortgage payments for a longer period,” Kris Brewster, the Society’s head of products, said:
“With the possibility of future base rate increases, more people may prefer locking themselves into longer fixed-rate deals to insulate themselves from potential interest rate rises.”
He added: “We are also delighted to offer a new 3-year Fixed and 3-year Tracker to our New Build range, which offers great value for those wishing to purchase their new home. We believe our New Build Residential Products offer very attractive rates and will help first-time buyers and those looking to move up the housing ladder to realise their dream of moving into a new property.”