Skipton Building Society is introducing a dedicated low-interest mortgage range aimed at supporting existing members who may be facing challenges in making payments.
The initiative aims to add an extra layer of financial assistance beyond the national Mortgage Charter, to which Skipton was an early signatory.
The Mortgage Charter has been providing temporary relief to borrowers, including modified repayment schedules and mortgage term extensions. Skipton’s new offering seeks to offer more sustainable, medium-term solutions.
Skipton’s CEO of home finance, Charlotte Harrison, said: “It’s crucial lenders offer as much support as we can to ensure borrowers remain secure in their own homes through these turbulent times, by looking at further opportunities to provide certainty and confidence in the ability to maintain payments.”
The new range offers 2-year, low-interest rate mortgage products with a fee of 5% of the existing loan amount. These can be opted for by existing Skipton borrowers approaching the end of their current mortgage deals and who might find it financially strenuous to continue with current rates.
Rates come in between 3.35% and 3.59% at loan-to-value (LTV) levels between 60% and 90%.
The lender also aims to leverage the strong UK house price growth over the past two years to provide financial cushioning.
Harrison elaborated: “Our borrowers have benefitted from strong growth in house prices over the last couple of years, earning them additional equity in their properties. For those who are financially stretched, this is a good time to consider if they can make that equity work for them.”
Richard Merrett, director of strategic relationships at Simply Biz, applauded the move, saying: “With costs for households rising across the board, any potential options to reduce monthly outlay are extremely welcome. There’s never been a more important time to seek mortgage advice and I hope that we see more lenders thinking innovatively.”
The product range details indicate varying interest rates based on loan-to-value (LTV) ratios, allowing members to choose the option that best suits their financial circumstances.
