In a message to brokers this morning, Skipton Building Society have announced that they will be removing their 60% loan to value (60% mortgage) residential base rate tracker products from their lending offerings. They have also announced a complete refresh of their other residential and buy-to-let mortgage products with rate increases throughout. Here is a breakdown of the changes.
What Is a Residential Base Rate Tracker?
In our blog ‘What is a tracker mortgage’ , our mortgage experts explain what a tracker mortgage means and the best way to get one. Essentially a tracker mortgage is a product that you can choose when securing a mortgage with a mortgage advisor that is not a fixed mortgage interest rate. Most mortgage borrowers choose to fix their interest rate for 2 or five years so that they have the security of knowing that their payments won’t go up at all for that period of time. However, this is not the only option. A residential base rate tracker mortgage is a mortgage loan that tracks the Bank of England’s base rate, normally with a small percentage of lender interest on top.
For example, if the Bank of England’s base rate is 4.5% then a base rate tracker mortgage might be offered at BOEBR +0.35%. Giving a payable rate of 4.85% initially. Now, as this is a tracker rate and not a fixed rate, this can and will change with the bank’s base rate. Meaning that if the base rate increases, like it has done consistently in 2022 and 2023, your payment rate will go up. Likewise, if the base rate decreases, then your payment rate will also go down.
Changes To Skipton’s Mortgage Products
Skipton Building Society, like many other mortgage lenders right now, has announced that they have made some major changes to their mortgage products. Most notably they have removed their 60% LTV residential base rate tracker product and increased their interest rates across all other products. Here is a breakdown of what has been announced so far:
All withdrawn products and newly released products will come into effect from the 15th of June 2023
- Rate increases across our mortgage ranges.
- New 5 year fixed Residential products.
- New 2 year Base Rate Tracker Residential products.
- Withdrawal of our 60% LTV Residential Base Rate Tracker and Existing Customer 5 year fixed Residential products.
There are 44 new products available which your mortgage advisor can explore with you in detail. Some of the highlights are:
- 85% LTV 5-year fixed residential at 4.98% with a £995 fee
- 90% LTV 5-year fixed residential at 5.19% with a £995 fee
- 95% LTV 5-year fixed residential at 5.52% with a £495 fee
- 75% LTV 2-year base rate tracker at 0.39% above the BOEBR
- 85% LTV 2-year base rate tracker at 0.75% above the BOEBR
- 90% LTV 2-year base rate tracker at 1.25% above the BOEBR
Speak To a Mortgage Advisor To Get The Best Mortgage Rates
The best way to ensure that you get the best mortgage rates for your own circumstances is to secure your mortgage through a professional mortgage advisor. Going it alone in the mortgage world without the help of a professional can lead you to paying much more than you need to for your mortgage. Give our team of mortgage professionals a call or send us an email today to see how we can help. Your initial mortgage consultation is free of charge.