Skipton Building Society is aiming to reduce the rates on its interest only mortgage range.
The residential interest only range provides 60%, 70% and 80% LTV products available to purchase and remortgage customers.
The products offer free valuations and standard legals for remortgages, and now includes a fee free two-year fix at 1.69% to 60% LTV and 1.43% to 70% LTV with £1,495 completion fee. The five-year fixed range has added a fee free fix at 2.15% to 60% LTV.
Kris Brewster, Skipton’s head of products, said: “Since launching in June, the interest only range has seen strong demand, and it’s great that we’re able to continue to support our members by lowering the rates across the range.”
These rate reductions contribute a new focus on the society’s interest only offering, with Skipton enhancing its policy for interest only residential lending in June. Standard maximum loan limits have now been applied, while the maximum loan for interest only of £50,000 removed.
The society will now also accept repayment strategies: the main residence can be used as the repayment vehicle when a minimum of £400,000 of equity exists within the property, as long as the sale of property element is no greater than 50% LTV.
Alongside this, up to a maximum of 15% of the customer’s total projected pension pot is permitted, where the minimum projected value of the pension pot is £400,000. A combination of repayment vehicles can be used subject to criteria.