Skipton to launch revised low rate buy-to-let range

Two and five-year fixed ranges of up to 60%, 70% and 75% loan-to-value (LTV) will be offered with a free standard valuation.

Rates now start at 2.09% for a two-year fixed mortgage at a 60% LTV, which comes with a £1,995 completion fee. At the higher end of the spectrum, a five-year fixed product at a 75% with no fees stands at 4.27%.

Current buy-to-let products are unaffected by the change.

The building society expects a ‘surge’ in interest in buy-to-let properties ahead of the 3% Stamp Duty surcharge applicable to buy-to-lets and second homes from April 2016.

A consultation over exemptions to the premium is underway, and it is expected that investors with 15 or more properties in a limited company structure will not be subjected to the hike.

This is not the Chancellor’s first tweak to the buy-to-let market. In his Summer Budget, Osborne announced landlords would only receive income tax relief of up to 20%, regardless of whether they pay higher rates of between 40% to 45% tax, in a phased programme starting in 2017.

A way to get around this is to own properties via a limited company, which will allow the landlord to avoid income tax and instead pay corporation tax, set at 18% by 2020.

In November, Mortgage Solutions revealed half of landlords looking to sell properties are doing so due to tax cuts.