Skipton Building Society has launched a low-rate mortgage range for existing borrowers facing payment difficulties.
The mutual has developed a suite of products that give any of its existing owner-occupied borrowers approaching the end of their current deal and who will be stretched on current rates, the opportunity to bridge their payments by maintaining a lower interest rate for two years.
The bespoke range has a fee of 5% of the existing loan amount, which can be added to the mortgage balance.
Product details cover:
- 60% loan-to-value offers at 3.35%
- 75% LTV offers at 3.39%
- 85% LTV offers at 3.49%
- 90% LTV offers at 3.59%
The firm points out: “With the UK having seen strong house price index growth over the past two years, many borrowers may now fall into a lower loan-to-value bracket than they expected.
“The new range enables those borrowers in need of greater financial support to harness that additional equity to support them over the two-year period, by offsetting a lower interest rate — and monthly payments — with a higher upfront fee.”
Skipton Building Society chief executive of home finance Charlotte Harrison says: “Our borrowers have benefitted from strong growth in house prices over the last couple of years, earning them additional equity in their properties.
“For those who are financially stretched, this is a good time to consider if they can make that equity work for them.
Harrison adds: “We will always work directly with our borrowers to understand their personal situations and work with them on a solution that is most suited to them and their circumstances.
“This range of mortgages presents another option for our members – it’s not to say, that they will be right for everyone.”
