Skipton International Surges to Number One Mortgage Spot

ST PETER PORT, GUERNSEY, January 26, 2011 (Press-News.org) A significant change to the old order was revealed in official figures released this month giving details of mortgage volumes in Guernsey for 2010. These show for the first time that local bank Skipton International has surged to the number one spot, claiming nearly 30% of all mortgage bonds issued during 2010. Of the 712 bonds completed, 207 related to Skipton International, with the second largest lender trailing 70 bonds behind with just 137 to its name during the year.

In addition to maintaining an attractive range of fixed and variable rate mortgages Skipton International innovated strongly during 2010, including their Next Generation Mortgage. This hugely popular service has opened the door to 100% mortgages for borrowers in Guernsey, Alderney and Jersey. At the core of the Next Generation Mortgage is a solution to one of today's biggest issues for borrowers, whether first or second time buyers, funding their deposit. Buyers selecting this mortgage are supported by a guarantor who provides security on their own property or by depositing a sum into a deposit account with Skipton International.

Commenting on the figures, Nigel Pascoe, Director of Lending, Skipton International said, "We are delighted to be the number one mortgage lender in Guernsey, both by volume and value. Our Next Generation Mortgage has been enormously popular with first and second time borrowers. It is also true that during the recent difficult market, our very personal approach to borrowers, taking the time to understand their personal circumstances and what they need from a home loan, has paid off. As a part of this approach, we are also able to offer many borrowers an immediate decision in principle over the phone."

Skipton International puts much of its success both as a mortgage lender and deposit taker down to a very personal approach to doing business locally. Telephone enquiries are answered promptly by local staff working in their recently refurbished offices in the Rohais. A walk in service is also available and staff are justifiably proud of the fact that they they are on first name terms with many customers, whether borrowers or savers. One immediate consequence of this focus both on local staff and the customer has been the bank being shortlisted for the Best Medium Business category in the 2010 Guernsey Awards for Achievement.

Skipton International is aiming to capitalise on this momentum in 2011 with the offer of a "no fee" deal on certain new mortgages, which could save customers GBP999. The no fee deal is a limited offer which may be withdrawn without notice.

2010 was also a very good year for the bank's deposit business, where it had a string of "Best Buy" accounts listed by Industry comparison website Moneyfacts.co.uk and the bank also picked up a prestigious Moneyfacts award, winning the 2010 Business Moneyfacts award for Best Offshore Business Deposit Account Provider.

Jim Coupe, Deputy Managing Director ends, "2010 was an outstanding year for us and our intention is to build on this success during 2011. We are delighted to be the number one mortgage lender for 2010, but equally, our success as a deposit taker is important for both local savers and local business, both of whom we serve with the same detailed, individual approach which we are justifiably well known for."

Skipton International Ltd offers a range of local mortgage and sterling savings accounts and is part of Skipton Building Society, the fourth largest in the UK with over GBP14 billion assets.
For more information on Skipton International mortgage products, visit http://www.skiptoninternational.com or call +44 (0) 1481 730 730

1. Skipton International Limited (SIL) will lend on residential properties in Guernsey, Jersey and Alderney and the criteria on maximum loan to value is as follows:
Next Generation Mortgage with third party security guarantee - 100%
Standard variable rate loans, fixed are loans, base rate tracker - residential only - up to 90%
Buy to let, base rate tracker residential - up to 80%
The maximum term is 25 years.
2. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.
3. Skipton International Limited (SIL) is a wholly owned subsidiary of Skipton Building Society (SBS), the UK's 4th largest building society with over GBP14 billion assets.
4. SIL is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 1994, as amended.

5. Skipton Building Society has given an undertaking agreeing to discharge the liabilities of SIL in so far as SIL is unable to discharge them out of it own assets and whilst SIL remains a subsidiary of Skipton Building Society.

6. As a Licensed Bank in Guernsey, Skipton International Limited is a participant in the Guernsey Banking Deposit Compensation Scheme (the "Scheme") established by The Banking Deposit Compensation Scheme (Bailiwick of Guernsey) Ordinance, 2008 (the "Ordinance"). The following is a brief summary of the Scheme, but is not intended as a substitute for the actual wording of the Ordinance, a copy of which is available on request.

• The Scheme only applies to 'qualifying deposits', which broadly means deposits made by natural persons for their own benefit; with a few limited exceptions such as, for example, deposits made by trustees of retirement annuity trust schemes, the Scheme does not apply to companies, trusts, partnerships or charities.
• The Scheme will provide compensation in the event that a Licensed Bank is unable to repay its depositors. Under normal circumstances, payment will be made within 3 months of receipt of a valid claim form.
• Compensation is limited to a maximum of GBP50,000 per individual claimant; in the case of a joint account each depositor would be entitled.
• Total Scheme compensation in any five year period is limited to GBP100 million. If claims exceed this cap, compensation would be reduced pro rata. The cap also means that compensation in respect of any one bank cannot exceed GBP100 million.
• The amount payable may be reduced if the Bank has any contractual right of set-off against the account. The Scheme is entitled to recover compensation from any funds subsequently paid out by the Bank.
• Further information and a leaflet about the Scheme is available at:
Website: http://www.dcs.gg
Telephone: +44 (0) 1481 722756
Post: P.O. Box 380, St Peter Port, GY1 3FY

7. Deposits made with SIL are not covered by the Financial Services Compensation Scheme established under the UK Financial Services and Markets Act 2000.

8. SIL places funds with SBS and thus its financial standing is linked to SBS. Publicly available information, including reports and accounts, is available from http://www.skipton.co.uk.

9. Copies of the latest SIL audited accounts are available on request.