The Building Society has also cut its maximum LTV for all interest-only applications from 75% LTV to 60%.
The lender has been offering 95% LTV deals for a year.
A spokesman for Skipton said: “We have been one of the few players in the 95% LTV arena during the past year. We have a certain amount of funding set aside for each time of lending, but it’s been getting a bit oversubscribed in the 95% tier, which is why we’re reviewing our position against the market and will then decide whether or not to return.”
Skipton will continue to offer deals up to 90% LTV.
The lender has also announced that it is to cut its maximum LTV for interest-only lending from 75% to 60%.
The changes apply to the lender’s direct and intermediary channels.
The Society said that from tomorrow, for applications up to 80% LTV, a maximum of 60% LTV can be taken on interest-only but the remaining 20% must be taken on capital and interest basis.
For applications over 80% LTV, borrowers must take out the loan on a capital and interest basis only.
Any outstanding interest-only applications up to 75% LTV can be submitted until close of business tonight, with the new rules taking effect from tomorrow morning.
“We are taking a more prudent approach with our interest-only lending,” added the spokesman.
Skipton’s buy-to-let lending policy remains unchanged.
