Skipton offering its existing mortgage customers low two-year fixes with five per cent arrangement fees

by Aaron Strutt

Oct 09 2023

• Building society launches the UK’s lowest 2-year fixes, dedicated to those who need it the most
• New mortgage range created to look after existing Skipton borrowers approaching the maturity of their existing deal and for whom new deals will be unaffordable

Skipton Building Society, part of Skipton Group, has launched a low-rate mortgage range specifically designed to help its existing borrowers at risk of payment difficulties, extending the support it already offers through the National Mortgage Charter.

These are temporary shorter-term adjustments, but what’s needed for some customers – those who need greater financial certainty - is access to an alternative mortgage option to support them over the medium term.

To tackle this, Skipton has developed a range of mortgage options to provide its borrowers with an alternative layer of support. Skipton has created a new, two-year, low-interest rate, member-only range following thorough testing and development. They are priced around 3.5%.

Existing Skipton customers offered two-year fixes with five per cent arrangement fees

These mortgage products will give any existing owner-occupied Skipton borrowers approaching the end of their current deal and who will be financially stretched on current rates the opportunity to bridge their payments by maintaining a lower interest rate for two years.

Despite offering fee-free options on all its ranges, over half of Skipton’s borrowers chose mortgages with a fee to help keep their monthly payments as low as possible. With this in mind, this bespoke range has a fee of 5% of the existing loan amount which can be added to the mortgage balance.

These two-year low-rate products are intended for members who need this level of added support to help them during these difficult times. Skipton will work directly with its borrowers who are facing financial difficulties to understand their individual financial situations and to work directly with them to offer options that help them in the short and medium term.

Aaron Strutt, product director at Trinity Financial, says: "Years ago, some of the lenders offered 2.5% arrangement fees, but I have not seen a 5% fee for residential mortgages before. 

"I think these deals will be popular with people who simply can’t afford their increased repayments or want breathing space. Hopefully, more lenders will develop similar options for new and existing borrowers."

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation 

The information contained within was correct at the time of publication but is subject to change.

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