Skipton Building Society has cut the interest rates on its two and three year fixed rate residential mortgages.

Key product changes:

Two-year residential fixes

• 2 Year Fix at 2.59% (was 2.99%) to 85% LTV with a £195 application fee and a £1,800 completion fee;
• 2 Year Fix at 2.89% (was 3.28%) to 85% LTV with a £195 application fee and a £300 completion fee;
• 2 Year Fix at 3.29% (was 3.58%) to 85% LTV with no application or completion fee.

Three-year residential fixes

• 3 Year Fix at 3.46% (was 3.58%) to 85% LTV with a £195 application fee and a £300 completion fee;
• 3 Year Fix at 3.65% (was 3.88%) to 85% LTV with no application or completion fee.

Criteria applicable to all of the above products

• Fixed until 31 March 2016 (two-year fixes) and 31 March 2017 (three-year fixes);
• Early repayment charges: 3/2% until 31/03/2016 of capital repaid, then interest until end of the month (two-year fixes); 4/3/2% until 31/03/2017 of capital repaid, then interest until end of the month (three-year fixes);

• Overpayments of up to 10% per annum allowed without charge;
• Free standard legals and valuations available on all remortgage products.

These new products are available through the Society’s Skipton Direct customer service centre, branches and all intermediaries.

Kris Brewster, Skipton’s head of products, said: “Customers are already enjoying peace of mind knowing that their mortgage payments will not increase for a fixed period, no matter what happens with the Bank of England Base Rate. We have now made these products even more attractive by introducing interest rate reductions on our two and three year fixed rate mortgages.

“As we strive to offer our customers best value products we’re constantly monitoring the marketplace and adjusting our products and interest rates to make sure they remain attractive.  These latest reductions ensure they remain among the best value available as we continue to lend strongly in line with our commitment to helping people to achieve their homeownership aspirations.”