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Skipton pulls out of 95% LTV market; interest-only lending cut to 60%

by: Mortgage Solutions
  • 26/03/2012
  • 0
Skipton pulls out of 95% LTV market; interest-only lending cut to 60%
Skipton Building Society is to pull out of the 95% LTV lending market on a temporary basis from tomorrow.

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.

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