Under the changes, the building society will still allow capital raising for Help to Buy buy outs, shared ownership staircasing, or to repay a second charge on the security property.
It comes after NatWest recently withdrew the option of debt consolidation for borrowers who are on a mortgage holiday or taking a repayment break from credit cards or loans.
A spokesman for Skipton said: “We’ve taken the difficult decision to suspend new advances for debt consolidation where additional funds are raised to pay off unsecured background debts.
“However, we still lend if customers can demonstrate affordability to pay both the new mortgage and the existing debts.
“Restrictions will apply equally to new and existing customers, including those on payment holidays.”
