Skipton removes maximum loan size caps for FTBs

Skipton removes maximum loan size caps for FTBs

Skipton Building Society, and adviser arm Skipton Intermediaries, have removed maximum loan size caps for first time buyers.

A statement suggested the move will in particular support the London and South housing markets, where first time buyers with good jobs and deposits struggle to meet lenders affordability criteria.

With average monthly rent payments in London estimated at around £1,500, removing the maximum loan size cap will enable many more to get on the housing ladder.

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Skipton’s head of products Kris Brewster said the change was made following customer and broker feedback.

“It’s important that we continually review our lending criteria, as we all know how fast the UK mortgage market changes. This move will enable more first time buyers to move away from renting, and to get the keys to their first home.”

Skipton’s maximum loan size cap prior to this change was £500,000.

Back at the start of April, Virgin Money also tweaked its affordability policy, including the introduction of a maximum loan-to-income cap of four times for loans over £500,000.