Skipton has launched a three-year base rate tracker capped mortgage at 4.75% which is equivalent to initial monthly payments of 569 for a 100,000 repayment mortgage over a 25-year term.
John Goodfellow, chief executive at Skipton, says: We are continually developing our extensive range of great mortgages and this one definitely ticks all the boxes with a fantastic rate, at 4.75%, a low cap, at 5.50% and no application fee.
We are expecting it to be a popular option, especially for those borrowers, such as first time buyers or couples with young families, who have to keep a tight rein on their finances.
Key features of the three-year base rate tracker capped mortgage include Bank of Englands base rate + 0.25% for three years- current pay rate of 4.75%. It is capped at 5.50% for three years.
After three years, reverts to the societys residential SVR currently 5.89% and is available up to 95% LTV with no higher lending charge up to 90% LTV.
It has free legal fees (through Skipton Home Conveyancing Service) and free valuation on all residential remortgage cases.
It has free accident, sickness and unemployment cover for six months and flexible benefits daily interest, overpayments and payment holidays.
There is no extended tie-in and an early repayment charge of 2% for the first 12 months and 1% for the subsequent 24 months.
There is no application fee and a 449 completion fee which can be added to the loan.