Skipton Building Society is not a complete stranger to high loan to value (LTV) lending and was one of the first to re-enter the 95 per cent LTV market, in the wake of the financial crisis, when lending for those with small deposits was all but non-existent.
The 95 per cent LTV market has been a more active one recently, so the re-launch of Skipton into this sector is a timely and welcome addition.
Although rates at 95 per cent LTV remain higher than for those that can put down a bigger deposit, Skipton’s new range of fixed rates is well priced and they clearly have an appetite to attract business. For example, the two year fixed rates start at 2.99 per cent with a £495 fee plus a very competitive no fee option at 3.19 per cent.
Five year fixes start at 3.45 per cent and the three-year deals are also right up there, starting from 3.19 per cent. All offer a free valuation.
There’s some stiff competition from lenders such as Digital Mortgages from Atom Bank, which is also a relatively new entrant, and others like Nottingham Building Society which has a competitive two-year fix.
Interestingly, as a lifetime Isa provider, Skipton has also launched a mortgage deal aimed at Lisa savers as they turn first time buyer. That offers a three year fix at 3.69 per cent with no fee and the added incentive of a £1000 cashback.
David Hollingworth is associate director, communications, at L&C Mortgages