Flexibility
Skipton mortgages offer you scope to change your payments to suit your ability to pay. They are also useful if you want to pay off the loan quickly. Here are some of the flexible benefits of Skipton mortgages:
Daily interest
We calculate your mortgage interest on a daily basis. This means that every time you make a capital repayment of any size the amount on which interest is calculated is immediately reduced. This should save you hundreds, even thousands of pounds over the life of your mortgage.
Overpayments
You can make overpayments over and above your regular monthly amount at any time. By making regular overpayments of even a modest amount, you could significantly reduce your mortgage term and save yourself thousands of pounds as a result.
For example, on a £100,000 repayment mortgage with interest at 6%, over a term of 25 years, paying an extra £25 a month means you could pay off your mortgage two years and one month earlier and save yourself £8,778 in interest payments!
Some of our mortgage deals may include Early Repayment Charges (ERCs) if overpayments are made.
Payment holidays
Your Skipton mortgage allows you to take payment holidays once you have had your mortgage with us for six months, if you have overpaid. You will need to give us at least 14 days prior written notice. As long as you have had no arrears, the holiday proposed would not take the loan to value above 95%, and there are sufficient surplus payments to cover the holiday, you may take up to three consecutive months' holiday. You cannot take more than a total of six months in any 12 month period. Of course, whilst you do not need to make payments during the holiday, interest will continue to be added to your account and your balance will increase.
Higher Lending Charge paid by Skipton up to 90% loan to value
Most lenders normally charge you a Higher Lending Charge (HLC) if you are borrowing a high percentage of the valuation or purchase price of the property. This is to provide your lender with extra security if you cannot pay your mortgage and your property is taken into possession and sold for less than you owe.
This charge is normally made on borrowing that exceeds 75% of the valuation or purchase price. However, with Skipton you will not usually have to pay a HLC on borrowing up to 90% of the valuation or purchase price (whichever is the lower).
For administrative reasons, you will see the charge debited to your account but we will credit your mortgage account with an amount equivalent to the HLC straight away on completion if you have borrowed up to 90% of the valuation or purchase price.
Customers borrowing more than 90% have the following choices - you can:
- have the HLC debited to your mortgage account on completion
- pay the HLC when the mortgage is taken out.
The HLC is designed to protect the Society, of which you will be a borrowing member, but it does not protect you individually. You will remain liable to pay all the money owing, including arrears, interest and the Society's legal fees. If a claim is paid to the Society under third party insurance, paid for out of the HLC, the insurers will normally have the right to recover the amount from you.
The HLC is a one-off charge. It will not be refunded if you pay your mortgage off early. If you exercise portability and take another mortgage, (see the 'Other information' section) a further HLC may apply.
Your Title Documents
Since dematerialisation the Society no longer hold packets of Title documents. We will ask your Conveyancer to return any deeds and documents to you. We do however, offer a Safekeeping Service for these deeds and documents for an annual fee of currently £25 after your mortgage completes.
Skipton Home Conveyancing Service