New Skipton deals 'offer security'

The Skipton Building Society has unveiled a pair of capped-rate mortgages that it claims will offer security to borrowers on a budget.

Rates on the three and five-year packages are capped at 6.44 and 6.49 per cent respectively, meaning the maximum monthly payments a borrower would have to make during the capped period on a £100,000 mortgage would be £671 and £674.

The three-year offer will track at 0.44 per cent above the Bank of England base rate (BBR) until November 30th 2010, giving it a current rate of 6.19 per cent.

A tracker rate of 0.49 per cent above BBR has been set on the five-year deal, meaning that it currently carries a rate of 6.24 per cent.

Colin Dale, head of lending at Skipton, said: "Our two new base rate tracker capped mortgages have two clear benefits – they give borrowers the confidence in knowing that their interest rate will never go above 6.49 per cent and the benefit that the rate will fall if we see future decreases in the base rate.

"Plus, the great starting rates definitely tick all the boxes for borrowers working within a budget."

Both products are available at up to 95 per cent loan-to-value and will revert to Skipton's standard variable rate – currently 7.14 per cent – after the offer period.

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