Skipton Building Society has teamed up with its estate agency subsidiary Connells Group to offer a 95% LTV mortgage for new-build properties.
The product will be available to customers through Connells Group’s national team of mortgage consultants and through its subsidiary The New Homes Group, which specialises in new-build homes.
The two-year fix has a rate of 5.99% up to 95% LTV with a £195 application fee, no completion fee and a maximum loan size of £300,000.
It is available to first-time and next time buyers purchasing a new-build home and has a 3% ERC, with overpayments of up to 10% per annum allowed without penalty during product term.
Adrian Scott, Connells Group mortgage services director, says: “New-build homes are an essential ingredient of a buoyant housing market because they boost the availability of quality housing in general, and for groups such as first time buyers in particular.
“We know builders are struggling to facilitate purchases at the moment because of the dearth of viable loans for first-hand properties.
“This new offering in partnership with Skipton is our way of helping to alleviate this deadlock and open up possibilities for borrowers.”
Kris Brewster, head of products at Skipton, says: “As a mutual, we believe it’s our job to enable homeownership and since the spring we’ve been offering one of the only low-deposit mortgages available, and at a very attractive rate with low fees.
“We believe the market has now stabilised sufficiently to make extending this to new builds a possibility, subject to our usual prudent lending criteria. Builders are a vital cog in the chain of the housing market.
“Without them, we wouldn’t have the kind of starter homes which enable first time buyers to get a footing on the housing ladder –or quality new homes for people ready to move up to the next rung. And we all know how vital they are to overall housing market health.”