Whats the difference between a fixed rate and a discounted variable rate mortgage?
Fixed Rate Mortgages
The monthly interest rate, and therefore your monthly mortgage payment, is guaranteed to stay the same for a set period – even if other interest rates rise during this time. However, if interest rates fall during the fixed period, your monthly payment won’t change, so you may end up paying more than you would with a variable rate mortgage. At the end of the fixed rate period your rate will change to our Residential Mortgage Variable Rate.
Discounted Variable Rate Mortgages
Your monthly payments are based on a discounted rate set at a certain level below our Residential Mortgage Variable Rate for a specific period of time. This means that your rate and payments could go up and down during the discounted period. At the end of the discounted period your rate will change to our Residential Mortgage Variable Rate.
What will happen next?
If your mortgage is due to mature prior to February 2018 (the maturity date is shown on the front of the letter we sent you)
When you’ve chosen the product you want and submitted your instructions, we’ll send you a formal Offer that will set out your specific mortgage arrangements, including details of your new monthly payment and the impact of any fees payable (whether paid up-front or added to the loan).
Once you’ve received your Offer, you’ll then have time to consider the full document and check the details. If you decide to go ahead and if you’re comfortable that your chosen mortgage product is suitable for you, you’ll then need to sign and return your Offer to us within 7 days. As long as you return your signed documents in time, we’ll honour the product you’ve chosen, even if it’s been withdrawn from general sale.
Once we’ve received your signed documents, we’ll make sure the rate change for your chosen mortgage is implemented on time and we’ll write to you to confirm when it’s been done.
If your mortgage is due to mature in or after February 2018 (the maturity date is shown on the front of the letter we sent you)
If you want to choose your mortgage product without advice from us, you can do this securely on Skipton Online.
You will need to login (if previously registered) or register on-line to use this service. For joint accounts, please make sure that all borrowers have registered as each holder will need to supply their authorisation separately. At registration you will have the choice of either a secure passcode mobile app or grid card for future purposes. It may take up to 7 days to receive these and complete the registration process.
Browse, compare and select new product - once logged in, you’ll find all the information you need, including a list of all our current mortgage products that you’re eligible for (based on your outstanding mortgage balance compared to the value of your property at that time). It’s worth remembering that our product range may change or be withdrawn at any time.
Carefully read the combined Mortgage Illustration and Contract Variation Offer(s). Please note the monthly payment stated within this document is an estimate of what your monthly payment will be.
You will need to supply your legally binding acceptance on-line before the Offer expires (our Offers are valid until midnight 7 days after the date shown on the Offer).
Leave the rest to us - Once we’ve received your acceptance (individually from all borrowers), we’ll make sure the rate change is implemented when your current interest rate ends. If you’re on or also have a mortgage account(s) free from early repayment charges and choose to change that account(s) to another rate, the change will take place from the first of the month after we receive your acceptance. However, If you are changing the rate on more than one account the changes will not take place to any accounts without both your acceptance and before your current rate ends. We’ll write to you confirming the exact payment once the change has been implemented.
How do I know what my new monthly payment will be?
You can use our mortgage calculator to give you an indication of what your monthly payment might be on any interest rate. Just enter the mortgage balance, term and rate. Your most recent mortgage balance can be found on the front of the letter we sent you, although it’s worth bearing in mind that this may not include your latest monthly payment and should not be used as a figure to fully pay off your mortgage.
Your Offer will then show your specific mortgage payment based on the exact balance and term remaining at the date it is issued.
What if I have any questions?
You can call us on 0345 600 5947 and we can provide factual information on our products or simply accept your instructions.
If, however, you want us to help you decide which product might be suitable for your needs, then one of our telephone-based Mortgage Advisers will be able to give you full mortgage advice.