Skipton Building Society is relaunching its three-year capped rate mortgage by reducing the cap and the initial rate.
The product is available at a 0.85 per cent discount for the first two years and a guarantee that the rate will not exceed 5.75 per cent before February 28 2008.
The mortgage reverts to the society’s residential SVR in year three. It is available up to 95 per cent LTV.
Skipton head of media relations Jennifer Holloway says: “If market predicitions are correct and the UK is nearing a peak of interest rates, borrowers with tracker mortgages could see their repayments decrease in 2005. The benefit of Skipton’s three-year capped rate mortgage is that if predictions are wrong and rates move upwards, borrowers have the safeguard knowing their rate won’t exceed 5.75 per cent.”