Mortgages  

Skipton eyes buy-to-let customers with new fixed-rate deals

Skipton Building Society has cut rates on a range of its buy-to-let mortgages by up to 0.30 of a percentage point.

At 75 per cent LTV, two-year fixed rate loans have been reduced to 3.19 per cent, from 3.49 per cent, with a £995 product fee.

A fee-free equivalent is also available at higher fixed rate of 3.69 per cent.

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In addition, a three-year fixed rate at 3.68 per cent is available to borrowers with a 25 per cent deposit, with a £995 product fee.

For remortgage customers at 75 per cent LTV, Skipton offers a three-year fixed rate at 3.55 per cent, and 3.75 per cent with a £1,995 and £995 product fee respectively, as well as a fee free rate of 4.10 per cent.

The five-year range includes a fixed rate of 4.09 per cent at 60 per cent LTV.

All offer free valuation and standard legal fees.

The building society recently reduced rates on all core residential two-year fixes from 50 per cent to 90 per cent LTV and remortgage products by up to 0.69 of a percentage point.

Highlights of the reduction include the launch of Skipton’s lowest ever fixed rate at 1.36 per cent for two-year fixed rate mortgages up to 50 per cent LTV with £995 fee.

The biggest rate reduction was made to the lender’s two-year fixed rate loan at 90 per cent LTV at 3.09 per cent with £995 fee.

Provider view

Kris Brewster, head of products, at Skipton Building Society, said: “Thanks to our prudent approach to lending, buy-to-let has always been a valuable and high-performing part of our mortgage portfolio. Our buy-to-let deals continue to prove popular and we are delighted to offer this refreshed fixed-rate BTL mortgage range with lower interest rates.

“We believe the range offers great value for purchasers of buy-to- let property and for those wishing to remortgage their portfolio.”

Adviser view

Alex Reynolds, IFA at Advies Private Clients LLP, based in London, said: “They [the products] sound relatively competitive. Having a lower fee and a fee-free option is good for those who are not borrowing a large amount of money.

“As brokers, we have to ensure that we pick the deal that is best suited to our client’s needs, not just the one with the lowest interest rates.

He added: “Lenders have no problem in securing cheap money which provides borrowers with a great opportunity to secure a mortgage and get on the housing ladder.”

Charges

£995 product fee for buy-to-let loans fixed at 3.19 per cent for two years and 3.68 per cent for three years at 75 per cent LTV, and 3.75 per cent for three-years fixed-rate remortgages at 75 per cent LTV.

£1,995 fee for three-year fixed-rate remortgages at 3.55 per cent up to 75 per cent LTV.

Verdict

The reductions, which were announced on the same day in which the Bank of England’s monetary policy committee voted to maintain a record low base rate of half a per cent, is not dramatic nor market leading by any stretch of the imagination.