Skipton improves maximum LTVs

Published on

Skipton Building Society is introducing policy changes designed to help low deposit mortgage customers including first time buyers.

The Society has announced it is increasing the maximum loan to value (LTV) for Joint Borrower Sole Proprietor/Non Occupying Borrowers, 3-4 person applications and for Family & Tenant Purchases, all allowing more options to help affordability and maximum borrowing which supports borrowers including first time buyers in areas with high value properties as a result of sharp House Price Index growth.

Details are as follows:

  • Joint Borrower Sole Proprietor: increasing the maximum LTV from 85% to 95%. The Joint Borrower Sole Proprietor can reside in the property; their income and expenditure are used in the affordability calculation; they are not added to the title deeds, but they are on the mortgage.
  • Non-Occupying Borrowers: increasing the maximum LTV from 85% to 95%. The Non-Occupying Borrower cannot reside in the property; however, their income and expenditure are used in the affordability calculation. The Non-Occupying Borrower is added to the title deeds and they are also on the mortgage.
  • 3-4 person applications – increasing the maximum LTV from 75% to 95%. Skipton is one of only a few lenders that can take up to four incomes into account when calculating affordability.
  • Family & Tenant Purchases – increasing the maximum LTV from 90% to 95%. A family purchase is where the applicant(s) is purchasing the property from a family member at the full market value. Whereas a tenant purchase is where the applicants are purchasing the property that they’re currently renting from their private landlord at the full market value.

Charlotte Harrison (pictured), Skipton’s head of mortgage products, said: “We have always recognised the importance of supporting first-time buyers to purchase their own home, and can see that with recent levels of house price growth, saving for a deposit has become even more of a challenge.

“That’s why I’m pleased to see us re-visit our approach to lending on low deposit mortgages in those areas that really can make a difference for buyers.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

RAW Capital Partners streamlines interest payments for overseas landlords

RAW Capital Partners has updated its mortgage proposition to allow foreign national borrowers to...

Landlord profits hold up but cracks widen as yields ease

Most landlords remain in profit, but the gap between higher-yielding portfolios and more traditional...

Santander unveils 98% LTV five-year fix for first-time buyers

Santander UK has launched a new five-year fixed mortgage at 98% loan-to-value aimed at...

Atom bank introduces rate discount for high coverage commercial mortgage cases

Atom bank has launched a new pricing incentive for commercial mortgage borrowers with strong...

Abandoned mortgage value jumps to £32.4bn

Home buyers walked away from more than £32 billion of agreed mortgage lending last...

Latest publication

Other news

RAW Capital Partners streamlines interest payments for overseas landlords

RAW Capital Partners has updated its mortgage proposition to allow foreign national borrowers to...

Landlord profits hold up but cracks widen as yields ease

Most landlords remain in profit, but the gap between higher-yielding portfolios and more traditional...

Santander unveils 98% LTV five-year fix for first-time buyers

Santander UK has launched a new five-year fixed mortgage at 98% loan-to-value aimed at...