Skipton has launched a flexible 3 year capped rate mortgage with an initial discounted rate of only 3.24%.
The rate is capped at 5.99% until March 31 2007, with a 2.50% discount off the Society's variable rate until September 30 2004.
It is available up to 95% LTV, with free MIG up to 90% LTV and free legal fees for remortgages through Skipton's home conveyancing scheme.
It also features free accident, sickness and unemployment cover for six months, flexible benefits – daily interest, overpayments and payment holidays and up to 10% capital repayments allowed each year, without charge, until March 31 2007.
Jennifer Holloway, head of media relations, says: “Recent industry figures have shown that the demand for fixed rate mortgages dropped significantly last month, suggesting that borrowers are looking for alternative products to best suit their situation.
“Skipton's 3 year capped rate mortgage offers homeowners the peace of mind that, in an environment of a rising base rate, they can be sure their repayments will not exceed 5.99% and are combined with a very low initial pay rate.”