Skipton Building Society, the UK’s sixth-largest, launched two new fixed-rate mortgages today. The society describes the two 5-year fixed rate products, ‘Stepping up' and ‘Stepping Down', as more suitable for borrowers with changing lives than the existing 5-year fixed rate.

Stepping Up has a low starting rate, at 5.59%, and steps up annually to 6.99% by year five.  It has a maximum loan-to-value of 75% and a completion fee of £895, and is aimed at those borrowers who may find standard fixed rate products initially too expensive but know that their income is going to increase over the coming years, such as graduates. The low start gives them the opportunity to get on the housing ladder.

Stepping Down reverses the rate movement, with a higher initial rate of 6.99% and steps down annually to 5.39% by year five. It has the same LTV and completion fee, and is designed for borrowers who are currently financially well-placed but may be planning life changes that require lower outgoings, such as retirement.

When taken as remortgage deals these products also offer free legal fees and valuation.

"These are products for our times; offering flexibility and value.  The average annual rate of these products is exactly the same as our existing flat rate 5-year fixed mortgage - 6.19%,” said, Steve Aldous, General Manager, Sales & Marketing.

"Whether you are looking to get on the housing ladder and need to keep your costs low, or are planning ahead for a time when your budget will be tighter, we now have the mortgage products to help."

---

Tag this article :