Skipton Building Society  

Skipton cuts rates on BTL and HTB loans

Skipton cuts rates on BTL and HTB loans

Skipton Building Society has cut rates on a number of fixes in its suite of buy-to-let (BTL) and Help to Buy loans.

On the BTL front for home purchasers, a two-year fix to 60 per cent loan-to-value (LTV) is available at 1.99 per cent, while a three-year fix to 70 per cent LTV is priced 2.69 per cent – both with £995 fees.

For remortgage customers, the two-year fixed range includes loans at 1.83 per cent and 2.26 per cent to 60 per cent and 70 per cent LTV with a £995 product fee respectively.

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

Meanwhile, Skipton’s Help to Buy purchase range includes a fee free two-year fixed rate at 2.05 per cent to 75 per cent LTV fee free with free upfront valuation and £500 cashback.

Five-year fixes are available at 2.12 per cent to 60 per cent LTV with £995 fee and free valuation, and fee free 2.38 per cent to 60 per cent LTV and 2.57 per cent to 70 per cent LTV with free valuation and £500 cashback.

What is more, the lender launched a two-year fixed rate remortgage range from 60 per cent to 90 per cent LTV which offers £250 cashback and free valuations.

Provider view

Kris Brewster, head of products at Skipton, said: “We are delighted to launch this refreshed fixed rate BTL mortgage range offering lower interest rates. In the present environment of ultra low interest rates, buy to let would seem to be a more and more attractive proposition for potential landlords.

“Skipton’s BTL deals continue to prove popular and we believe this new range offers great value for purchasers of BTL property and for those wishing to remortgage their portfolio.

 “We are delighted to offer lower rates on selected products in our Help to Buy range.”

Adviser view

Paul Spencer-Nixon, principal partner at Fingerprint Financial Planning, said: “There is a sense that the BTL market has experienced a slowdown following the well documented changes to stamp duty, but the slowdown has not manifested itself in our business. That is probably because we tend to do repeat business with seasoned landlords with large portfolios. I know one client who is planning on selling up because of the changes.”

He added: “We have not seen clients transferring their properties into a limited company because of the changes because it is a huge gamble. We mustn’t forget that such transactions are subject to capital gains tax and can also be subject to stamp duty. The interest rates on limited company BTL mortgages are higher than those on conventional BTLs.”

Charges

Ranges from fee free to £995

Verdict

The regulatory environment at present appears to be skewed in the favour of first-time buyers, somewhat at the expense of landlords. The hike in stamp duty and the loss of BTL  tax relief for individuals in the higher tax rate bracket would result in an increase in supply of property, because a vast number of said individuals are likely to shed their portfolio to offset the heightened cost burden – in theory. However, prospective first-time buyers who are currently tenants are likely to be stifled in their attempts to save for a deposit by a hike in rents by landlords seeking to overload the additional cost pressures.