The mutual said where the value of the financial incentive is up to two per cent of the purchase price or valuation, whichever is lower, there would be no impact to the maximum LTV of 95 per cent on new-build houses and 90 per cent LTV on new-build flats.
It noted that if the value of the financial incentive was more than two per cent of the purchase price or valuation, whichever is lower, then the maximum LTV is reduced by five per cent.
As an example, if a customer was to borrow 95 per cent LTV on a new-build house for £250,000 and the developer offered £5,000 towards stamp duty, the mutual would proceed at 95 per cent LTV.
Previously the lender would have reduced the loan to 90 per cent LTV.
Another instance would be if a customer wanted to borrow 90 per cent LTV on a new-build flat for £150,000 and the builder offered £3,000 to moving costs. The lender would proceed at 90 per cent LTV, whereas before it would have cut the loan to 85 per cent LTV.
John Scrivens (pictured), Skipton Building Society’s new build and first-time buyer lead, said: “At Skipton we understand that the new-build market requires a specialist approach. This change to our criteria on new build incentives will allow more customers to buy new homes.
“We continue to evolve our new build proposition from broker feedback and this is another great example of just that.”
Skipton BS adds deals, cuts rates and withdraws products
Skipton Building Society added that from tomorrow it would change rates for its residential existing customer range.
This included bringing out 70 per cent LTV products and withdrawing deals at 75 and 80 per cent LTV in its residential existing customer range.
The lender is reducing five-year fixed rate in its buy-to-let range, with new rates including 70 per cent LTV deals and £250 cashback products.
Product withdrawals will occur at 10pm tonight.
