Since the relaunch of mortgages for borrowers with a five per cent deposit earlier this year, many lenders have restricted lending on new-build homes. This included the providers that launched under the mortgage guarantee scheme which excludes newly built properties.
Skipton’s products include a two-year fixed rate at 3.74 per cent and a five-year fixed at 3.76 per cent. Both mortgages have no fee and offer £500 cashback.
New-build flats will continue to be restricted to 85 per cent LTV, but higher LTV lending is available through the mutual’s shared ownership offering which is open up to new houses and flats up to 95 per cent LTV.
Charlotte Harrison (pictured), head of mortgages at Skipton Building Society, said: “Looking at recent data from the Office for National Statistics, the average price of a new-build property now exceeds the Help to Buy regional price caps in five of the nine regions, with another two very closely aligned.
“As we look to the future, we recognise that government support, such as the Help to Buy scheme, can’t continue to be relied upon by those wanting to take their first step onto the property ladder, and we’re answering that call.”
“New-build properties are typically more energy efficient. We believe it’s important that home buyers across the board have products available to them that afford the opportunity to purchase such a property.
“We recognise that lenders can play a more active role in greening the UK housing stock. Aligning our policy for new and second-hand homes is a first step in our efforts to support the fight against climate change,” Harrison added.