The Skipton Building Society is now offering 95% mortgages.
It believes the launch could provide an extra boost to tens of thousands of potential first time buyers who chose to open Skipton’s cash Lifetime ISA and have already benefited from £98 million in government bonuses from HRMC; however, the products are also available for general purchase customers.
The Skipton has already promised £250 cashback on mortgages for its LISA customers, but if they also take a 3-year fixed rate mortgage at 3.69% to 95% LTV with the Society they will receive an additional £1,000 cashback.
Kris Brewster, the Skipton’s head of products, said: “As one of the largest UK building societies, Skipton’s purpose has always been to support people in planning and preparing for their life ahead. By adding 95% mortgages to our product range we are giving homebuyers, including those purchasing for the first time, the opportunity to step onto the housing ladder sooner than they might have expected.
“In addition, Skipton has already promised that all LISA customers who take a mortgage with the society will receive £250 cashback as standard but they can increase that amount by £1,000 by taking our new LISA exclusive mortgage product.
“Our LISA customers have already received over £98 million in cash Lifetime ISA bonus from HMRC to help first time buyers on their journey towards buying a home. Since Skipton launched its cash LISA, more than 100,000 accounts have been opened sending a real signal of intent from our younger members that despite increasing house prices and squeezes on our wallets they are making a determined effort to get the keys to their first home.”
As well as the three-year fix offering £1,000 cashback exclusively for LISA customers, the new range of residential 95% LTV products includes a fee free two-year fix at 2.99%, fee free 3-year fix at 3.35% and fee free five-year fix at 3.59%.
Skipton has also created a First Time Buyer scorecard available on the Society’s website that first time buyers can download to use when house hunting.
