Skipton heads for new Stateside

Skipton Building Society is launching a new version of its US Dollar Libor Tracker loan – the Stateside Mortgage – with rates starting from just 3.55% and free legal fees for all remortgages.

The interest rate tracks the three-month US Dollar Libor Rate (USDL) for the first five years.

The loan is repayable by the borrower in pounds sterling, thereby avoiding the complication of dealing in a foreign currency. The initial setting for the USDL rate will be 1.9%.

There are four rate options under the Stateside Mortgage:

• USDL plus 1.65% fixed differential for five years, up to 85% LTV, with insurance

• USDL plus 1.80% fixed differential for five years, up to 85% LTV, without insurance

• USDL plus 1.80% fixed differential for five years, up to 95% LTV, with insurance

• USDL plus 1.95% fixed differential for five years, up to 95% LTV, without insurance

Jennifer Holloway, head of corporate communications at Skipton, says: “By tracking US Dollar Libor rates, we can pass on the benefit of a rate, which has remained historically lower than that in the UK, directly to our customers without any currency risk. For simplicity, the rate is automatically reset every quarter and with a reset due in less than a month, borrowers could see their payments fall in the near future.”

Other features include:

• USDL rate reset quarterly, on the first working day of March, June, September and December

• Converts to Skipton&#39s Mortgage Discount Scheme after five years &#45 giving a 0.5% discount off Society&#39s variable rate (currently 5.70%)

• Free MIG up to 90% LTV

• Flexible benefits – daily interest, payment holidays and overpayments

• Free legal fees for remortgages (or £250 cashback in Scotland)

• Fees – £100 application fee, £295 completion fee

• Redemption charge of 5% of the balance of the mortgage for five years, with up to 10% capital repayments allowed, without charge, each year