Skipton 95% LTV deal will be direct only
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Skipton Building Society is launching a deal for first-time buyers at up to 95% LTV which will only be available from the lender’s branches and direct channels.
The mutual is launching a range of products aimed specifically at first-time buyers and which offers discounted deals for existing Skipton customers and their families. It includes a two-year fixed rate deal priced from 4.99% to 6.99% for existing customers , with LTVs between 85% and 95%, and a £995 fee.
New customers can access the products from 5.19% to 7.19%.
Skipton is also offering a two-year tracker starting from Bank of England base rate plus 4.19% for existing customers and 4.39% for new customers, with a maximum LTV of 90%.
It comes with a £695 product fee.
The building society is also launching a range of 90% LTV deals available to brokers with Skipton’s subsidiaries Pink Home Loans and Connells.
The broker deals include a three-year fixed rate deal at 5.29% at up to 85% LTV and a three-year fixed rate deal at 6.59% at up to 90% LTV.
Richard Andrews, products controller at Skipton, says: “We have a limited tranche of funding available to gauge demand, and the customer response will help shape our mortgage offering during the rest of this year.
“We understand that many borrowers – both first-time buyers and those looking to move home – are struggling as a result of the historic recession and resulting housing market volatility.
“We hope this range will provide them with a much-needed helping hand to achieve their home ownership aspirations.
“In reflection of our mutual values, it also combines innovative, good value product solutions with loyalty rewards which recognise our members’ ongoing, strong commitment to the society.”
The direct products will launch on May 17.
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Readers' comments (18)
Kevin friend | 14 May 2010 5:17 pm
What a way to finish the week if you are a Broker! At 95% no doubt you will need blue blood too!
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Louise Riley | 14 May 2010 5:45 pm
When are brokers going to have the same rates or maybe exclusive rates which are better than the actual lender? Its a nightmare at the minute
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Anonymous | 14 May 2010 6:05 pm
So in other words the intermediary is unable to source good mortgage clients for them. £695 fee for a direct client!
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Jon Shears | 14 May 2010 6:10 pm
Getting Boring Now.... Shall we just all shut our broker doors?
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Sarah Smith | 14 May 2010 7:22 pm
serisouly you can't complain about direct only deals then ask for a broker exclusive. I think this is a positive step to more high LTV deals, I'm sure the products will be expanded to us over the course of the year.
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Anonymous | 14 May 2010 9:46 pm
The argument from lenders is that they can't offer these rates through the IFA channel as they would not be able to cope with demand and they would not have sufficient funds. The branch network do little or no business so they can offer competitive rates with the hope that their branch staff may actually get round to selling a mortgage. Can I suggest that all brokers charge a fee and start recommending these direct products. We will then see how well the branch network copes with demand!
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Graham Kennedy | 15 May 2010 0:44 am
What are you worried about? This is the Skipton we are talking about. The detail will show the deals to be absolute rubbish! Stop being paranoid!!!
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Anonymous | 15 May 2010 6:18 am
all the brokers making negative comments now will be the same brokers who will be crying with the broker market is dead in the water. smell the coffee guys, the game is over as you know it, dual pricng is here to stay you have to adapt or diversify.
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Anonymous | 15 May 2010 9:14 am
As a broker for Sequence/Conells owned by Skipton we are now getting dual priced by our parent company! It beggars belief
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Bobby | 15 May 2010 9:24 am
Its time for brokers to throw the towel in now. For the next 5 years mortgage finance will be very limited and those that lend will do so through non advised, execution only, direct deals with their own salesforce to keep control of the finance and have it all in house with the opportunity then to sell all the insurances.
The role of the whole of market broker is dead.
Its very sad and wholely unfair and obviously bad for the public that they will no longer be able to get independant advice but its what the FSA and lenders have determined and we as sole traders with no clout or trade body to support us have no chance of changing that.
Its been a worthwhile career and I am glad to have helped so many clients but I am not a registered charity and need to get an income and it will no longer be from being a mortgage broker so it really is time to find a new career.
Good luck in whatever you do in the future.
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