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Skipton BS announces reduced fixed rates, trackers and new 3-year deals

Journalist: Justin Moy, Mortgage & Property Reporter

ended 11. September 2023

Skipton Building Society has just announced some reduced fixed mortgage rates, that it has launched a 3-year fixed range of products, and repriced its tracker deals (see screengrab - actual rates published tomorrow). Free UK news agency, Newspage, sought the views of brokers on whether this is start of another week of mortgage rate cuts and if 3-year fixes are becoming more popular with borrowers? Their views can be seen below.

 

6 responses from the Newspage community

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Justin Moy
Managing Director at EHF Mortgages
It's encouraging to see another week kick off with more rate reductions, and the introduction of the 3-year fixed range will interest borrowers and brokers alike, especially with market speculation that rates will stay higher for longer. Tracker margins are priced a little better but the fixed rate reductions are small and are not going to have any significant impact on the market unfortunately.
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Elliott Culley
Director at Switch Mortgage Finance
It's positive to see more lenders offering 3-year deals and giving more choice in the market to clients. With forecasts saying rates may stay higher for longer, 3-year fixed rates may become more popular. They may also be more attractive to borrowers as they are slightly cheaper than 2-year fixed rates and don't tie you in for as long as 5-year fixes.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
Three years seems to be a sweet spot for when clients believe things will be more settled in the market. Nobody knows, though, so anyone concerned about managing payments should consider longer-term options. On the whole, though, it's positive to see further rate reductions. Let's see what the rest of the week brings.
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Gary Bush
Financial Adviser at MortgageShop.com
It's been a good two weeks for lender fixed-rate reductions, fuelled in part by the Governor of the Bank of England's comments that rates may be nearing their peak. In the current climate, three could be the new two for many borrowers as 3-year fixes come in slightly cheaper and don't lock you in for as long as a 5-year fix.
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Richard Campo
Founder at Rose Capital Partners
Skipton cutting rates is just par for the course for the remainder of the year, which makes it exceptionally difficult for borrowers and indeed advisers to find the best product. The rate cuts are being driven by falling money markets and a slow property market, which means lenders have to compete with each other to win business, which drives down costs. In the main, we are recommending penalty-free trackers to our clients so they can either ride the market down if the Bank of England starts cutting rates as expected next year, or they can opt to switch to a fixed rate as and when fixed rates bottom out. I think anyone taking a longer term fixed rate right now will look back on that in 3, 4 or 5 years' time and perhaps feel they are paying over the odds. That said, everything can change in a heartbeat if something unexpected happens.
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Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
It's interesting to see the 3-year deal making a return out of the cold. Recently it's been a very binary choice for many between a 2-, 5- or 10-year fixed rate, with many lenders offering no deals in between these periods. With many people uncertain of the next few years, they are struggling to decide between the shorter-term 2-year deals (on the basis they feel rates may reduce further and want to benefit from that in a couple of years time) and the medium-term 5-year deals (which are currently a lower interest rate than the comparable 2-year options), so a 3-year option fits in with allowing this group to have a goldilocks option that sits in the middle of these two extremes - not too short and not too long with an interest rate that also sits squarely between the other two options.