Skipton Building Society is increasing maximum loan sizes across its complete residential mortgage range on 6 October.
The UK’s fourth largest building society is introducing this new policy change following recent significant increases in house price growth.
Key changes include:
- 85.01%-95% LTV now £600,000 (from £450,000).
- 80.01%-85% LTV now £800,000 (from £600,000).
- Less than or equal to 80% LTV now £1,000,000.
The last time Skipton reviewed its maximum loan sizes was in 2016 when the average interest rate in the market for a two-year fixed rate at 95% was 4.08%. Today Skipton is offering a rate of 2.79% on the equivalent product. Because of the reduction in interest rates, borrowing an extra £150k over 35 years costs £135 per month less in interest payments.
Charlotte Harrison (pictured), Skipton’s head of mortgage products, said: “We’ve seen unprecedented levels of change within the mortgage industry over the past 18 months, and as a lender I’m pleased we’ve been quick to react and evolve with those market conditions, most recently expanding our proposition to support 5% deposits on new build houses.
“With significant levels of house price growth I’m pleased we continue to evolve our proposition by providing borrowers with larger loans at higher loan to value, ensuring we continue to meet the needs of our customers.”
Skipton is also making changes to its full mortgage product range, including selected rate reductions across the residential and buy-to-let ranges of up to 0.62% percentage points. It is also introducing new seven-year fixed options.
New deals include the following:
- 2 Year Fixed, Residential, 90% LTV, 2.19%, £0 fee
- 2 Year Fixed, Residential, 95% LTV, 2.67%, £495 fee
- 3 Year Fixed, Residential, 90% LTV, 1.89%, £995 fee
- 5 Year Fixed, Residential, 90% LTV, 2.52%, £995 fee
- 2 Year Tracker, Residential, 60% LTV, 0.99%, £995 fee, 0% ERCs
- 2 Year Fixed, BTL, 60% LTV, 1.25%, £995 fee