The Skipton Building Society is to enter the 95% loan to value new build market on Monday 9 August.
The mutual will be launching two new products. The details are as follows:
- 2 year fix at 3.74% to 95% LTV with no fee and £500 cashback available for new build houses.
- 5 year fix at 3.76% to 95% LTV with no fee and £500 cashback available for new build houses.
New build flats will continue to be limited to 85% LTV; however, shared ownership continues to be an exception where Skipton will allow new build houses and flats up to 95% LTV.
Charlotte Harrison (pictured), the Skipton’s head of mortgage products, said: “Looking at recent data from the ONS, the average price of a new build property now exceeds the Help to Buy regional price caps in five of the nine regions, with another two very closely aligned. First-time buyers are in some instances having to find an extra £2,000 to achieve a 5% deposit.
“As we look to the future, we recognise that government support, such as the Help to Buy scheme, can’t continue to be relied upon by those wanting to take their first step onto the property ladder, and we’re answering that call.
“New build properties are typically more energy efficient and we believe it’s important that home buyers across the board have products available to them, that afford them the same opportunity as others to purchasing such a property. We recognise that lenders can play a more active role in greening the UK housing stock and aligning our policy for both new and secondhand homes is a first step of many in our efforts to support the fight against climate change.”
