Recent changes in the
UK mortgage market have seen
fixed-rate mortgages gradually recede from being the most competitive deals.
Tracker mortgages, anchored to the
base rate, now lead the
home loans market in competitive terms.
Skipton Building Society is set to raise
rates on its
fixed-rate mortgages today.
Skipton’s range of fixed-rate mortgages, known as the pick ‘n’ fix range and incorporating terms between one and three years, will all see
rate increases. The one-year
bond rate is set to climb to 5.06 per cent; the two-year to 5.16 per cent and the three-year fixed-rate
mortgage will climb to 5.26 per cent per annum.
The pick ‘n’ fix
bonds require a minimum
investment of £500, and a maximum investment of £50,000, with a maximum of one bond per customer. The chief executive of
Skipton Building Society, John Goodfellow, reportedly said: "Since we launched our first pick 'n' fix bonds two years ago, they have consistently offered some of the best value on the high street."
The dilemma remains for borrowers whether to choose a
tracker mortgage or a fixed-rate mortgage. Many
mortgage lenders, concerned by rising swap rates and anticipating a rise in base rate, increased the
interest rates on their fixed-rate deals last month to avoid losing out financially.
