Skipton Building Society has unveiled cuts to a number of fixed-rate products in its new-build and help-to-buy ranges.
The revised new-build range features a new two-year fix at 90 per cent, discounted by 0.80 of a percentage point to 3.19 per cent, with a £995 completion fee.
The fee-free option has also been discounted by 0.60 of a percentage point to 3.59 per cent.
Three-year and five-year fixes at 90 per cent LTV remain unchanged, while all existing products in the range at 75 per cent, 80 per cent and 85 per cent LTV have been withdrawn by the lender.
In addition, the revamped help-to-buy range includes a two-year fix at 75 per cent LTV reduced by 0.14 of a percentage point to 1.85 per cent with a £995 completion fee. The fee-free option is now available at a rate of 2.49 per cent.
Two-, three- and five-year fixes are now available for remortgage customers at 2.29 per cent, 2.49 per cent and 2.95 per cent with no completion fee respectively.
All new-build business, regardless of product selection, will continue to receive an upfront valuation, while the help-to-buy range offers free valuation plus £500 cashback on selected products.
Provider view
Skipton head of products Kris Brewster said: “We believe our new-build residential products offer attractive rates and will help both first-time and second-time buyers who are looking to move up the housing ladder.
“We believe this will increase our speed of service, and further demonstrates our commitment to meeting the real-life lending needs of our customers. These latest product offerings will see us continue to live out these principles and make home ownership an affordable reality for even more of our members.
“All new-build applications to Skipton are given a priority underwrite within its specialist underwriting team.”
Adviser view
Commenting on the two-year new-build fixes at 90 per cent LTV, Nick Thompson, mortgage adviser at Shropshire-based Matrix Capital Limited, said: “What this shows is that the market is easing. We are getting better rates for higher LTV loans. It is quite difficult for those looking to get onto the property ladder for the first time to save up for a 60 per cent LTV loan, so these deals are useful.
He added: “I think we may see a return to the 100 per cent LTV loan. To be honest, I never had a problem with them in the first place. I used to recommend Northern Rock 110 per cent mortgages, although only to customers the product was suitable to. Brokers are partly to blame for the mortgage situation before the financial crash – too many of us were recommending these products for unsuitable clients.”
Charges
Charges range from zero to £995.
Verdict
The woes of prospective first-time buyers have been well-documented, for good reason. UK homes are in short supply, especially in London, which has contributed to the inflation of house prices. People are simply struggling to save up for a deposit for a mortgage, and those applying for higher LTV loans are subject to elevated rates of interest.
Skipton’s new deals are competitive – particular the two-year fix at 90 per cent LTV. Any efforts to help first-time buyers get onto the property ladder are welcome.
