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Capped mortgage rates fall

Date: Tue, 16 Nov 04 Analysis

Skipton Building Society today re-launched its three-year capped rate mortgage and lowered both the cap and the initial rate on the loan.

Customers who take out the mortgage receive a 0.85 per cent discount for the first two years of the loan, along with a guaranteed maximum rate of 5.75 per cent until February 28th, 2008.

"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," said Jennifer Holloway, head of media relations at Skipton Building Society, adding: "The benefit of Skipton's three-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 per cent."

The initial rate of the mortgage is 5.24 per cent.

After the first two years the mortgage reverts to Skipton's standard variable rate, currently 6.09 per cent, or 5.75 per cent - whichever its lower.

Capital repayments of up to ten per cent of the original loan allowed each year, until February 28th, 2008. However, there is an early repayment charge of four per cent to February 28th, 2006; three per cent to February 28th, 2007; and two per cent to February 28th, 2008.

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Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.