Skipton returns to BTL lending

29 March 2011 | By Natalie Thomas

Launching on March 29, the new mortgages are available via the society’s Skipton Direct telephone service centre and through selected intermediaries.

It is offering the products through Legal & General, Openwork and PMS’s top 120 firms, as well as The Business Mortgage Company and Connells Group.

It is offering two-year fixed rate mortgages up to 60% LTV at 4.49% and three-year fixed rate mortgages up to 60% LTV at 5.49%.

The products include an application fee of £245, payable upon application and non-refundable and a completion fee of £1,250 payable upon completion or can be added to the loan.

Kris Brewster, head of products at Skipton, says: “Thanks to our prudent approach to lending, buy-to-let has always been a valuable and high-performing part of our mortgage portfolio. However, we decided to temporarily cease offering buy-to-let loans in 2009, as a cautious step to protect the business from the uncertainties facing the markets and economy at that time.

“However, with evidence that the housing market is beginning to stabilise, albeit with the potential for further limited house price falls later this year, we believe it’s now appropriate to make a controlled, low risk return to this space.

“Therefore, we have decided to offer a set of straightforward and competitive products which we hope will appeal to both existing landlords and new ones hoping to make the most of the investment opportunity this sector represents.”

If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat