SKIPTON BUILDING SOCIETY
Flexible 5 Year Fixed Rate Mortgage
Flexible fixed-rate mortgage
Until January 31, 2010
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
Up to 3.5 times principal income plus second or 2.75 times joint
Capital repayments of up to 10% a year allowed without penalty, free legal fees and free valuation for remortgages, six months' free mortgage payment protection insurance
Overpayments, payment holidays, interest calculated daily
£299 plus £100 application fee
5% of amount repaid in year one,
4% in year two,
3% in years three to five
0.3%-0.5% of original loan
Tel: 08706 061621
Skipton's 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't like the six months' 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.”
Suitability to market: Average
Competitiveness of mortgage rate: Average
Adviser remuneration: Average