The buy-to-let lender said it will honour applications for current rates that are submitted by close of business on Friday.
The stress rate applied to the lender’s five-year fix will remain at payrate, but the stress rate for its three-year base tracker will rise from 6.99 per cent to 7.99 per cent at a rental cover of 125 per cent, or 110 per cent if qualifying criteria is met.
Its five-year fixed product will see a 0.6 per cent rise in the interest rate, while its three-year base rate tracker will be relaunched and start from 5.84 per cent.
Jim Coupe, managing director at Skipton International, said: “Skipton International has carefully considered the decision to raise rates, but with the recent rises in swap rates, following the release of the latest UK inflation figures, costs have risen significantly.
“The apparent continuation of underlying inflation has heightened financial market expectations for future base rates, leading to an increase in swap rates. We are keeping a close eye on the market situation.”
Atom Bank pulls deals
Atom Bank withdrew all its prime and near prime purchase and remortgage products on Tuesday, saying demand had “increased significantly” due to movement from its competitors.
The lender said it made the decision to remove products to protect its service levels.
It said the withdrawal would be temporary and the products would return with updated rates on Thursday.
A spokesperson for Atom said: “Due to price increases across the market, we’ve seen demand increase significantly over the past few days. We have made the decision to take these products off sale temporarily to protect service levels for our brokers and customers, returning to sale on Thursday.”
Saffron Building Society removes BTL product
Saffron Building Society announced that it would be pulling its five-year fixed limited company buy-to-let product on Wednesday.
The deal was available at 75 per cent loan to value (LTV) and the lender is accepting applications until 5pm on 7 June.
It will be relaunched on Thursday with a new rate.
