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Skipton relaunches 75 per cent LTV mortgages and The Cambridge restricts lending

  • 08/04/2020
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Skipton relaunches 75 per cent LTV mortgages and The Cambridge restricts lending
Skipton Building Society is bringing back its residential purchase mortgage range as well as introducing a new affordability approach for applicants impacted by Covid-19.


The range will include products up to 75 per cent loan to value (LTV) after the society temporarily reduced residential and buy to let deals above this tier in March.  

It is yet to reintroduce its buy to let deals above 75 per cent LTV but said further fixed rate buy to let products would be launched next week. 

Its new range included a five-year fixed purchase at 1.65 per cent at 75 per cent LTV with a £1,955 fee; for remortgage there is a two-year fixed at 1.32 per cent at 60 per cent LTV and a £995 fee.  

There is also a fee-free ten-year fixed at 2.32 per cent at 60 per cent LTV and a buy to let two-year tracker for purchase and remortgage at 2.32 per cent to 60 per cent LTV with £1,495 fee. 

The society has also launched an interest-only residential range and will extend its use of desktop valuations to enable it to continue lending. 


Affordability changes 

Skipton has confirmed it will accept cases from furloughed applicants with affordability based on the furloughed income as well as any top-up contributions from employers. 

The maximum LTV where any applicant is relying on furloughed income is 60 per cent. Product transfers are excluded from these restrictions, unless the applicant is seeking additional funds. 

Skipton is also continuing to lend on all Scottish cases where a Home Report of less than six months old can be produced. This will include lending up to 95 per cent LTV with a new range of products exclusively available for Scottish lending.  

Alex Beavis (pictured), Skipton’s head of mortgages, said: “During this difficult time, Skipton remains committed to supporting borrowers by providing access to a broad range of competitive mortgage deals.   

We’re working hard to continue to make our proposition as widely accessible as possible whilst also maintaining the high levels of service brokers and customers expect. 


The Cambridge restricts lending to 75 per cent LTV 

The Cambridge has capped new business applications to 75 per cent LTV and a maximum loan size of £500,000 as the lender faces a restriction on its ability to carry out physical valuations. 

These changes affect purchases, remortgages and further advances but product switches will not be impacted. 

The building society has also implemented a new digital valuation process to allow it to continue lending where possible. For the time being, The Cambridge will be unable offer valuation on properties over £1m. 

Mortgages above 75 per cent LTV will be removed from today. Any applications for the products which are being withdrawn must be submitted with the application fee paid by 5pm 9 April. 

The Cambridge’s Help to Buy range will remain available for product transfers.  


Rate reductions 

As of 9 April, the society will decrease the standard variable rate (SVR) on residential mortgages from 5.24 per cent to 4.89 per cent. SVR on buy to let mortgages have gone down to 5.54 per cent from 5.89 per cent. 

It will also be reducing rates by 0.35 per cent across its range of variable rate mortgages. 

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