Skipton unveils 3yr capped mortgage

Skipton Building Society has launched an updated version of its three-year capped mortgage, featuring a reduced cap.

Borrowers are guaranteed that the rate will not exceed 4.9 per cent before October 31st 2008, and will pay just 4.64 per cent for the first year.

The building society claims the new product offers one of the lowest capped rates available, with a 1.25 per cent discount in the first year and a 0.80 per cent discount in year two.

In year three the mortgage reverts to the society's residential SVR (currently 5.89 per cent) or the capped rate of 4.99 per cent, depending on which is lowest.

Jennifer Holloway, head of media relations at Skipton Building Society, commented: "The benefit of Skipton's three-year capped rate mortgage is, whatever happens, borrowers can budget safe in the knowledge that the highest their rate will be for the next three years is only 4.99 per cent, whilst enjoying the benefit of reduced payments should UK rates fall."