Skipton Building Society is increasing its revert rate for all new applications and existing customers looking to increase their borrowings or switch rates.
Any new mortgage taken out from tomorrow will revert to the lender’s new revert rate, called the mortgage variable rate, which is set at 5.49 per cent for residential products and 5.69 per cent for buy-to-let products.
These rates replace the lender’s previous revert arrangements, although the changes will not affect existing borrowers unless they increase their borrowing or switch rates.
The mutual has a variety of revert rates. Applications received prior to 30 December 2009 moved onto the lender’s SVR, which was capped at 3 per cent above base, while any received between then and 14 November reverted to base plus 4.45 per cent.
In January 2010, Money Marketing revealed the building society had temporarily scrapped the ceiling on its SVR, which meant that customers would never pay more than 3 per cent over base rate, meaning its SVR increased from 3.5 per cent to 4.95 per cent.
The lender blamed “exceptional circumstances” as the reason behind its decision to scrap its SVR ceiling. Skipton defines exceptional circumstances as base rate being less than 2.7 per cent and base rate minus the UK average branch instant access savings rate being less than or equal to 2.5 per cent for each of the preceding three months.
Skipton Building Society will tomorrow launch a new range of mortgage products, with rates reduced by up to 0.3 per cent on residential products and 0.5 per cent on buy-to-let products. A number of new deals will also be launched, starting from 2.88 per cent.
The new range includes two, three, five, seven and 10-year residential fixed rates. Among the buy-to-let options are two, three and five-year fixed rates and two-year trackers.
The building society’s headline rate is a two-year fixed rate up to 60 per cent LTV at 2.69 per cent, down from 2.99 per cent previously. It has a £195 application fee and £800 completion fee.
Buy-to-let products start at 3.48 per cent for a two-year fixed rate at 60 per cent LTV. There is a £245 application fee and £750 completion fee.
Skipton’s head of products Kris Brewster says: “We are delighted to be able to provide such an attractive set of mortgages. To an extent, the reductions we have made to some rates reflect the current market trend – fuelled by factors including the introduction of the Government’s new Funding for Lending scheme.
“However, we are also signalling our continued commitment to enabling homeownership, in line with our original mutual ethos, throughout the rest of this year and beyond.”