Skipton axes £500,000 loan cap for FTBs

Skipton Building Society and Skipton Intermediaries have axed their £500,000 maximum loan cap for first-time buyers.

Skipton says the change took place earlier today and is designed to help with affordability problems.

A Skipton statement says: ‘The move will in particular support the London and South housing markets, where first time buyers with good jobs and deposits struggle to meet lenders’ affordability criteria.

‘With average monthly rent payments in London estimated at £1,500, removing the maximum loan size cap will enable many more to get on the housing ladder.’

Skipton head of products Kris Brewster says: “It’s important that we continually review our lending criteria, as we all know how fast the UK mortgage market changes.

“People who have good jobs, earning very healthy salaries, and have saved up large deposits, are still being priced out of the south and London markets.

“This move will enable more first time buyers to move away from renting, and to get the keys to their first home.”