Skipton International Surges to Number One Mortgage Spot

Guernsey property market still buoyant

ST PETER PORT, Guernsey, January 23, 2011 - 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
(www.skiptoninternational.com/) 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 (
www.skiptoninternational.com/mortgages/guernsey.aspx). 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" (www.skiptoninternational.com/savings/)
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
www.skiptoninternational.com or call +44-(0)1481-730-730

Editor's notes:

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: 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 www.skipton.co.uk.

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

    Media contacts: Please contact:
    Guy Stephenson/Jennifer Duffy
    Nacelle Limited
    Tel: +44-(0)20-8333-9125
    E-mail: jenny@nacelle.co.uk

Media contacts: Please contact: Guy Stephenson/Jennifer Duffy,
Nacelle Limited, Tel: +44-(0)20-8333-9125, +44-(0)7980-241-558,
E-mail: jenny at nacelle.co.uk