Skipton deal ending - stuck what’s best!

Lewis7498

Hi everyone,

I am posting for my two friends who aren’t sure what to do and just asking for what you would do?

They have their mortgage ending in December 23 and have a fixed deal with Skipton for 1.29% (2 year fix from December 21 - amazing!) and ideally would want to stay with them as one party is now self employed and not earning a great deal so not sure they want the affordability checks… but willing to look at it all.

Am I right in saying that the best 2 year deals at the moment are around 5-6%?

They have £160,000 left over 15 years (by December) and also have Help To Buy.

Skipton is offering 5.45% for existing customers online and it works out £332 a month more!

What would you be looking to do in their position?

born_again

If they do not want affordability checks, then Skipton offer is the only way.

smipsy

born_again said:

If they do not want affordability checks, then Skipton offer is the only way.

And they should lock in any possible offers now, before rates go even higher...

Lewis7498

Is it predicted that rates are going even higher before the end of the year?

MFWannabe

Lewis7498 said:

Hi everyone,

I am posting for my two friends who aren’t sure what to do and just asking for what you would do?

They have their mortgage ending in December 23 and have a fixed deal with Skipton for 1.29% (2 year fix from December 21 - amazing!) and ideally would want to stay with them as one party is now self employed and not earning a great deal so not sure they want the affordability checks… but willing to look at it all.

Am I right in saying that the best 2 year deals at the moment are around 5-6%?

They have £160,000 left over 15 years (by December) and also have Help To Buy.

Skipton is offering 5.45% for existing customers online and it works out £332 a month more!

What would you be looking to do in their position?

5.45% for what deal? 2 year? 

What about 3, 5 and 10 years? 

simon_or

If you can't look at other lenders then the best thing to do it lock in a switch with Skipton now. It won't cost a penny, and ask them to add any Skipton product or arrangement fee (if there is one) to the mortgage and to pay it off after completion.

If Skipton rates go up between now and December, you sit tight and do nothing.

If Skipton rates go down between now and December, you simply change the switch to the new lower rate.

Once a rate is locked in, if you want to reduce the jump in the monthly payment, speak to Skipton and see if it is possible to extend the term. Even with a longer term, you can still overpay and get the same interest-cost impact as a shorter term.

Lewis7498

MFWannabe said:

Lewis7498 said:

Hi everyone,

I am posting for my two friends who aren’t sure what to do and just asking for what you would do?

They have their mortgage ending in December 23 and have a fixed deal with Skipton for 1.29% (2 year fix from December 21 - amazing!) and ideally would want to stay with them as one party is now self employed and not earning a great deal so not sure they want the affordability checks… but willing to look at it all.

Am I right in saying that the best 2 year deals at the moment are around 5-6%?

They have £160,000 left over 15 years (by December) and also have Help To Buy.

Skipton is offering 5.45% for existing customers online and it works out £332 a month more!

What would you be looking to do in their position?

5.45% for what deal? 2 year? 

What about 3, 5 and 10 years? 

They want to ideally move away possibly abroad in 2/3 years so don’t want 5 🙄

Lewis7498

simon_or said:

If you can't look at other lenders then the best thing to do it lock in a switch with Skipton now. It won't cost a penny, and ask them to add any Skipton product or arrangement fee (if there is one) to the mortgage and to pay it off after completion.

If Skipton rates go up between now and December, you sit tight and do nothing.

If Skipton rates go down between now and December, you simply change the switch to the new lower rate.

Once a rate is locked in, if you want to reduce the jump in the monthly payment, speak to Skipton and see if it is possible to extend the term. Even with a longer term, you can still overpay and get the same interest-cost impact as a shorter term.

Can you switch to the lower rate later on before December if you’ve already agreed to what the rate is now?

Thanks

simon_or

Yes. This was already possible with most banks but is also part of the mortgage charter signed by all high street banks and building societies including Skipton.

"With effect from 10th July customers approaching the end of a fixed rate deal will have the chance to lock in a deal up to six months ahead. They will also be able to manage their new deal and request a better like for like deal with their lender right up until their new term starts, if one is available"