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Skipton launches fee-free 95% mortgage

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  • 21/03/2011
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Skipton launches fee-free 95% mortgage
Skipton Building Society is launching a range of mortgages including a two-year fix from 6.49% at 95% loan-to-value (LTV).

Borrowers can choose to fix at two, three and five years with no completion fee. Remortgage customers are entitled to free valuation and legal fees.

All deals, except the 95% two-year fix, will be available through all channels, including brokers, the branch network and Skipton Direct telephone service operation.

Skipton is offering two-year fixed rates deals ranging from 3.69% at 60% LTV, 4.19% at 75% LTV and 6.49% at 95% LTV.

Skipton’s head of products, Kris Brewster, said: “Our new, limited edition 95% LTV product is expected to appeal particularly to borrowers looking to purchase their first home. However, we expect it will also be attractive to people wanting to remortgage, who have so far been restricted by the impact of housing market conditions on the equity in their homes.

“We’re offering a limited tranche to balance meeting borrowers’ needs with controlling risk to the business in the best interests of all our members.

“We hope that the lack of a completion fee on all of these new products will also make life that little bit easier for borrowers trying to pull together sufficient deposit to achieve their goals.”

Andy Sewell, managing director of brokerage OFM Mortgages said: “It’s positive to see lenders responding to the clear need for mortgage products for people unable to raise huge deposits.

However, the downside is the rate of 6.49% which is fairly high and similar to the Connells and Skipton 95% deal launched earlier in the month.”

He added: “While the additional mortgage fees are reasonably low, the 6.49% rate doesn’t make this the most attractive high LTV deal in the market.”

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