Skipton Building Society has launched a new mortgage for borrowers wanting to invest in the property market.
The residential buy-to-let mortgage has a discount of 1.30% in the first year, offering an initial rate of 4.40%, with flexible features and no compulsory insurance. The deal reverts to variable rate in year three and is available up to 80% LTV.
Flexible features include daily calculation of interest, overpayments and payment holidays, while the products carries a redemption charge of 2% of the balance of the mortgage for the first two years, with up to 10% capital repayments allowed, without charge, each year.
Jennifer Holloway, head of corporate communications, says: “Stock market performance has led to people taking the safe option and putting their money into more traditional savings accounts.
“However, those wanting a slightly higher return, with a degree of increased risk, are still considering buy-to-let as a potentially profitable form of investment. This mortgage has been designed specifically to help those investing in property for the first time to ease onto the buy-to-let ladder, with an attractive discount in the first twelve months.”