From 9 April 2020, Skipton Building Society will reintroduce its residential purchase mortgage range, which will include products up to 75% loan-to-value ratio (LTV).
The new mortgage range will include: for purchase, a 5-year fix at 1.65% to 75% LTV with a £1,995 fee; for remortgage, 2-year fix at 1.32% to 60% LTV with £995 fee, and a fee free 10-year fix at 2.32% to 60% LTV; and a buy-to-let 2-year tracker for purchase and remortgage at 2.32% to 60% LTV with a £1,495 fee.
The building society is also introducing a new interest-only range for residential customers.
With home valuations suspended during the nationwide lockdown, Skipton is extending the use of desktop valuations, and introducing a revised affordability approach for applicants impacted by COVID-19.
The building society will accept cases where the applicant has been furloughed, but affordability will be based on their furloughed income, including contributions made by their employer to top-up the government’s 80% scheme.
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The maximum LTV where an applicant is relying on furloughed income in 60%. Product transfers are excluded from these restrictions, unless the applicant is also seeking additional funds.
Skipton is continuing to lend on all Scottish business where a Home Report less than six months old can be produced, including lending up to 95% LTV with a new range of products exclusively available for Scottish lending.
Alex Beavis, head of mortgages at Skipton Building Society, said: “During this difficult time, Skipton remains committed to supporting borrowers by providing access to a broad range of competitive mortgage deals.
“We’re working hard to continue to make our proposition as widely accessible as possible whilst also maintaining the high levels of service brokers and customers expect.
“Our reintroduction of 75% LTV deals for buy to let and residential purchases and support for furloughed workers demonstrates this commitment, whilst the launch of special range of Scottish products up to 95% LTV for applicants with a valid Home Report provides a pragmatic approach to supporting borrowers in Scotland in this difficult and usual environment.
“In order to help us continue to support you and your clients, I encourage anyone who needs to speak to us to make use of our online FAQ pages, webchat and email services in order to avoid longer telephone wait times in our contact centre.”
By Jessica Bird
Source: Mortgage Introducer