Skipton BS three-year fixed rate mortgage 1.57%, 60% LTV, £995 fee
285°Expired

Skipton BS three-year fixed rate mortgage 1.57%, 60% LTV, £995 fee

Editor 12
Editor
Found 14th Feb
Skipton has revamped its mortgage range and the standout product is as follows:

  • Three-year fix at 1.57%
  • Max loan-to-value (LTV) 60%
  • £995 fee

Other options include:
  • Three-year fix at 1.64%
  • Max loan-to-value (LTV) 75%
  • £995 fee
Or
  • Three-year fix at 1.89%
  • Max loan-to-value (LTV) 60%
  • No fee

All the above are available to purchasers and remortgagers.

Fixing for three years?
I checked on Moneyfacts and the 1.57% rate seems to be a best buy for the three-year fixed market. However, for some reason not many lenders offer three-year fixed deals so being the best isn’t as tricky as for, say, the two-year fix market, or five years.

How to compare mortgage deals
As always, it’s important to calculate the total cost of a mortgage deal. You can do this by adding together the total monthly payments over the fixed period (3 x 12 = 36 payments in this case) then adding any product fee minus any cashback.

Why I like this product
Three years isn’t a bad length of time to fix for. If you fix for two years you face having to do the whole remortgage thing in just two years’ time. But if you fix for five years, you’re tying yourself in for a pretty long time – what will you do if you need to exit the deal early because you want to move house for some reason?

So, all in all, I think three years is not a bad time period to commit to. And the rate is decent too.
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12 Comments
Can you overpay?
Was there not a 7 year option on this post ? What happened to that was looking for some info on that
teerex3 h, 49 m ago

Can you overpay?


you can over pay by 10% of the original loan amount each year without any penalties
7 Year Fixed Rate Mortgage Standard fee for Purchase & Remortgage 2.48% Fixed until 31/05/2025
4.74% our current RMVR a variable rate for the remainder of the term
3.7% APRC7% until 31 May 2019,
darall17093 h, 38 m ago

Was there not a 7 year option on this post ? What happened to that was …Was there not a 7 year option on this post ? What happened to that was looking for some info on that

Edited by: "madgeeza" 14th Feb
By the time my fixed rate ends (aug 2019) the rates will rise....just my luck. Currently stuck on a 3.29% deal which I locked myself on for 5 years, weeks later all rates dropped.
Original Poster Editor
darall17095 h, 14 m ago

Was there not a 7 year option on this post ? What happened to that was …Was there not a 7 year option on this post ? What happened to that was looking for some info on that


Yes, there was. I don't know where it's gone. I will re-post.
arjun3113 h, 50 m ago

By the time my fixed rate ends (aug 2019) the rates will rise....just my …By the time my fixed rate ends (aug 2019) the rates will rise....just my luck. Currently stuck on a 3.29% deal which I locked myself on for 5 years, weeks later all rates dropped.


I feel your pain.
arjun3116 h, 58 m ago

By the time my fixed rate ends (aug 2019) the rates will rise....just my …By the time my fixed rate ends (aug 2019) the rates will rise....just my luck. Currently stuck on a 3.29% deal which I locked myself on for 5 years, weeks later all rates dropped.


Ouch...you have been very unlucky
gotta do the number crunching alot of these big fee upfront mortgages are just to make the upfront interest rate as low as possible for advertising purposes.
often its advisable to go for the higher interest rate with no fee, a decent mortgage broker will advise best on this..
arjun31114th Feb

By the time my fixed rate ends (aug 2019) the rates will rise....just my …By the time my fixed rate ends (aug 2019) the rates will rise....just my luck. Currently stuck on a 3.29% deal which I locked myself on for 5 years, weeks later all rates dropped.


Is it not worth paying the early redemption penalty and securing lower rate for next few years?
Do some number crunching.
ran123ran2 h, 53 m ago

Is it not worth paying the early redemption penalty and securing lower …Is it not worth paying the early redemption penalty and securing lower rate for next few years?Do some number crunching.


Only a year left, and it's £5000 to exit. Will have to let it run.
madgeeza14th Feb

you can over pay by 10% of the original loan amount each year without any …you can over pay by 10% of the original loan amount each year without any penalties



teerex14th Feb

Can you overpay?


Yes you can, but it is a maximum of 10% of the remaining balance each year.

So if you had a mortgage of £100k, you could overpay by £10k with no charge in year one.
Say your mortgage balance is £88k in the second year then you could overpay by £8.8k with no charge.

Source

skipton.co.uk/mor…age

Most of our mortgage deals include Early Repayment Charges (ERCs) if overpayments are made that are more than 10% of the mortgage balance in any one year.
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