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News: Skipton caps new mortgage

Skipton Building Society has launched an improved 3-year capped rate mortgage with a reduced cap and increased discounts. Borrowers choosing this mortgage will currently pay 4.64% for their first year, along with the guarantee that their rate will not exceed 4.99% until October 31st 2008.

The rates are based on a 1.25% discount in year 1, followed by a 0.80% discount in year 2. In year 3, the loan will revert to the society's residential standard variable rate - currently 5.89% - or the capped rate of 4.99%, whichever is the lowest.

Available up to 95% LTV and with no higher lending charge (MIG) up to 90% LTV, the loan also has free legal fees (through the Skipton Home Conveyancing Service), as well as a free valuation on all residential remortgage cases.

Borrowers will also be eligible for free accident, sickness and unemployment (ASU) cover for six months.

Capital repayments of up to 10% of the original loan are allowed each year, without charge, until October 31st 2008. And you can take payment holidays.

There is no extended tie-in, although there is an early repayment charge of 4% to October 31st 2006, 3% to October 31st 2007 and 2% to October 31st 2008.

And there is no application fee. However, a £399 completion fee - which can be added to the loan - is in force.

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