From the end of January 2019, Skipton Intermediaries is to introduce additional borrowing through a new automated process on its eMortgages system.
This will include the introduction of proc fee payments for all introduced business.
The new additional borrowing offering will be available through a simple online process. The gross fee will be the same as the current product transfer rates – 0.3% on residential and 0.35% on buy-to-let. The fee will also be paid for standalone additional borrowing.
Paul Darwin, Skipton’s director of intermediary relationships, said: “This is something we’ve been considering for some time, and something our broker partners have fed back that they’d like to see. But it’s also something we feel is reflective of the current mortgage market – as more and more borrowers are taking longer term fixed rate products and staying in their homes for longer.
“With higher moving costs, including stamp duty, we’re seeing borrowers extending and improving their homes to suit their changing needs and circumstances. We’re adjusting our processes to meet this emerging trend to help deepen and lengthen relationships with both our borrowers & broker community.”
This change follows on from other recent improvements to Skipton’s product transfer application process. This has seen the inclusion of more complex post contract variations, such as change of term and repayment type and product transfers for interest only mortgages.