View more on these topics

Skipton offers flexible help

SKIPTON BUILDING SOCIETY

Flexible 5 Year Fixed Rate Mortgage

Type:
Flexible fixed-rate mortgage

Fixed term:
Until January 31, 2010

Fixed rate:
5.79%

Minimum loan:
£25,000

Maximum loan:
Up to 95% of valuation subject to a maximum of £200,000, up to 90% of valuation subject to a maximum of £300,000, up to 85% of valuation subject to a maximum of £400,000. up to 80% of valuation subject to a maximum of £450,000, up to 75% of valuation subject to no maximum

Income multiples:
Up to 3.5 times principal income plus second or 2.75 times joint

Conditions:
Capital repayments of up to 10% a year allowed without penalty, free legal fees and free valuation for remortgages, six months&#39 free mortgage payment protection insurance

Flexible features:
Overpayments, payment holidays, interest calculated daily

Arrangement fee:
£299 plus £100 application fee

Redemption fee:
5% of amount repaid in year one,
4% in year two,
3% in years three to five

Introducer&#39s fee:
0.3%-0.5% of original loan

Tel: 08706 061621

Skipton&#39s flexible five-year mortgage is available for loans up to 95 per cent of valuation and is fixed at 5.79 per cent.

Park Row Independent Mortgages managing director Kevin Paterson feels this is a reasonably competitive five-year fixed rate which is very much in vogue at the moment. He says:” The fee free remortgage package is useful, and the ability to overpay up to 10 per cent a year, while by no means unique, is a useful feature.”

On the downside, Paterson complains that the fixed rate, at 5.79 per cent, is hardly at the cutting edge of competitiveness. He adds: “I don&#39t like the six months&#39 free mortgage payment protection insurance. It is just a gimmick to cross sell our clients.” He also points out that the overall fees are split between application and arrangement fees, which make them appear less. Finally, he feels the redemption penalties, which do not decrease after the third year, are a bit on the hefty side.

Looking at potential competitors to the Skipton mortgage, Paterson cites Yorkshire Building Society at 5.31 per cent, Portman Building Society at 5.39 per cent and Lambeth Building Society at 5.45 per cent.

Summing up Paterson says: “The lending criteria is a bit on the restrictive side with 95 per cent only available up to £200,000. Equally there is some smoke an mirrors going on with the higher lending fee, which could complicate things.”

BROKER RATINGS:
Suitability to market: Average
Flexibility: Average
Competitiveness of mortgage rate: Average
Adviser remuneration: Average

Overall 6/10

Recommended

Framlington – Framlington Aim VCT

Type: Venture capital trust Aim: Growth by investing mainly in companies listed on Aim Minimum investment: Lump sum £5,000 Closing date: November 30, 2004 Charges: Initial up to 5%, annual 2%Commission: Initial 3% or initial 2.25% and renewal 0.375% Tel: 0845 766 0184

FSA backs IMD review

The FSA has underlined its commitment to the European Commission&#39s review of the insurance mediation directive, saying it will be standing up for greater flexibility. FSA sector manager (retail intermediaries) Paul Rich told Money Marketing that the review, scheduled for April, is important not just to help intermediaries but for the long-term state of the […]

Cascade of change is causing concern

Serious concerns are being voiced about the difficulty of implementing depolarisation at the same time as multiple other changes which are rapidly approaching. A debate on depolarisation at Money Marketing Live at G-Mex in Manchester last week heard Bankhall group sales director Shaun Godfrey point out that depolarisation is coinciding with the most significant changes […]

Supermarkets considering child trust funds

Supermarkets including Sainsbury and Tesco are believed to be considering entering the market for child trust funds Money Marketing understands that Sainsbury and Tesco are both looking at the market. Both supermarkets have loyalty points schemes which enable them to target customers expecting children with life insurance and they would easily be able to extend […]

Guide

Guide: 10 required letters — what to send, to whom and when?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. The topics in this guide include: the letters you need to send out; what to send and when; the importance of employee engagement; and what to consider as additional communication.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com