Mortgage News
Skipton widens BTL to all brokers and first-time landlords
Skipton Building Society is loosening its buy-to-let lending criteria to lend on first-time landlords, new-builds and applicants with £20,000 a year income and launching two tracker loans to all brokers.
The fourth largest mutual said the new-build changes still exclude flats. The rates on the trackers start from 3.24% and are available from 60 to 70% LTV.
The two new products add to the Society’s existing range of 2 and 3-year fixed rate buy-to-let mortgages, and their launch coincides with the introduction of a number of criteria changes.
Skipton’s buy-to-let criteria assess BTL mortgages on a rental calculation of 125% of the mortgage interest calculated at a rate of 6%. Customers are allowed a portfolio of up to five properties with SBS with a total value of no more than £1m and a minimum income of £20,000 a year.
The mutual will lend to individuals, but not limited companies and allow capital raising up to 70% LTV providing the additional funds are to be used for improvements or portfolio expansion.
Kris Brewster, head of products, said: “We returned to buy-to-let lending earlier this year in line with our mutual commitment to helping people to achieve their varied homeownership aspirations, and hope the criteria changes which coincide with this new product launch will make property investment possible for even more people.
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“We believe this is an excellent time to consider becoming a landlord, with rental demand soaring due to limited mortgage availability and indications that people are increasingly looking to rent until later in their lives, in keeping with the more European model of homeownership.”