Mortgages  

Skipton revamps BTL deals with LTV levels of 75%

Skipton Building Society has refreshed its range of fixed rate buy-to-let products at varying loan-to-value (LTV) levels up to 75 per cent.

The society’s new BTL range for purchasers includes five-year fixed rates at 3.69 per cent at 70 per cent LTV, and 3.89 per cent to 75 per cent LTV – both with £995 fees.

For those looking to remortgage their property, two-year fixes at 60 per cent LTV are available at 2.19 per cent with a £1,995 product fee, 2.49 per cent at £995 and 3.19 per cent fee free.

Article continues after advert

The five-year range includes a fee free loan at 75 per cent LTV priced at 4.17 per cent.

All remortgage products offer free valuation and standard legal fees, and all purchase products include a free standard valuation.

The lender, which recently unveiled plans to integrate Skipton Financial Services Ltd (SFS) – its wholly owned financial advice subsidiary – to form one combined business, revised its range of two and five-year fixed rate residential mortgages at the start of the year.

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.

“We have a total of 36 products in our buy-to-let range to give landlords and potential landlords plenty of choice, and as many different options as possible to help suit their many different needs.”

Adviser view

Commenting on the revised five-year fix at 70 per cent LTV, Ian Gwinnell, director of Birmingham-based All Counties Financial, said: “It sounds like a fair deal. When I source mortgages, I tend to look out for deals that have no arrangement fees because the mortgage marketplace is substantial and there are many lenders offering fee-free deals. Then I look at deals that come with an arrangement fee, and look at which of the two would work out cheaper over the fixed term.

“There has been a spike in demand for buy-to-let mortgages because of the changes in regulation due to come into effect soon. The changes to stamp duty are certainly something landlords have been thinking about. I’m not too sure if the demand for buy-to-let mortgages is going to come down once the changes are implemented.”

Mr Gwinnell added: “Skipton is very good when it comes to administration and offer good products.”

Charges

Ranges from fee free to £1,995

Verdict

It appears that lenders are attempting to encourage landlords to purchase another property ahead of the changes to stamp duty by offering enticing deals. Here, the revised range boasts some notable competitive rates. A low fee and fee-free options are also pluses.

There appears to be a general consensus among industry experts that demand for BTL mortgages is likely to dip once the stamp duty changes and the MCD are implemented. While this is likely to be the case in the first instance, it would be unsurprising if this level of demand in the mortgage marketplace continues now at the tail end of the financial year.