In a move that spells good news for aspiring homeowners and property investors, Skipton Building Society has announced significant changes to its mortgage offerings. Starting from 12 December, the mutual lender is set to reduce rates on a range of mortgages, making it more affordable for people to buy homes or invest in property.

Skipton is slashing the rates on 16 product transfer deals for its existing customers. This includes both residential and buy-to-let (BTL) customers.

For Residential Customers:

• A Five-Year Fix: Skipton is offering a five-year fixed-rate mortgage at 4.65%. This deal comes with a £1,295 fee and is available for loan-to-value (LTV) ratios of 60%.

For Buy-to-Let Customers:

• Five-Year Fixed Deal: Existing BTL customers can benefit from a five-year fixed-rate at 5.24%.
• Two-Year Fixed Deal: Additionally, a two-year fixed-rate deal is available at 5.99%.
• Both these BTL deals are available for 75% LTV and come with a £995 fee.

Support for First-Time Buyers and New Build Purchases

Skipton is showing a strong commitment to helping first-time buyers and those with smaller deposits.

• 95% LTV on New Builds: Skipton has introduced mortgage deals at 95% LTV for the purchase of new build flats. This is a major change from their previous stance where they did not lend at this high LTV for new build flats due to concerns about price volatility.

This move is particularly noteworthy as it opens up more opportunities for first-time buyers who might struggle to save for a large deposit.

Innovative Track Record Mortgage

Skipton’s initiatives don’t end there. The lender has been proactive in creating more accessible mortgage products.

• Track Record Mortgage: Launched in May, this innovative mortgage allows borrowers to take a home loan at 100% LTV (with no deposit required) if they have a history of making rental payments for at least 12 months. This product is a game-changer for renters who have been consistent in paying rent but may not have a large savings pool.