"We’re also delighted to lower rates across our two and five year fixed rate core residential products as well as offering a new residential remortgage range"
The interest-only purchase range, which offers free valuations, includes a fee free two-year fix at 1.66% to 60% LTV, 1.33% to 60% LTV with £1,495 completion fee and 1.79% to 80% LTV with £1,495 completion fee.
Five-year fixes include a fee free 2.25% to 60% LTV and 2.29% to 80% LTV with £1,495 completion fee.
The remortgage range, which offers free valuations and standard legals, includes a fee free two-year fix at 1.79% to 60% LTV and 1.46% to 70% LTV with £1,495 completion fee. The five-year fixed range includes a fee free 2.24% to 60% and 2.21% to 80% LTV with £1,495 completion fee.
The Society has also enhanced its policy for interest-only residential lending. The maximum loan for interest-only of £500,000 has now been removed, with standard maximum loan limits now being applied.
The Society will now also accept the sale of a mortgaged property or 15% of a customer's total projected pension pot as a repayment strategy.
The main residence can be used as the repayment vehicle when a minimum of £400,000 of equity exists within the property, providing the Sale of Property element is no greater than 50% LTV. If the overall interest-only loan is above 50% LTV, additional repayment vehicles can be used in conjunction with Sale of Mortgaged Property up to 70% LTV interest only, 80% part and part.
The enhanced policy for interest only residential lending is also available for those who want Skipton Bespoke, a proposition which the society launched recently for customers looking to borrow mortgages of over £1m.
Paul Darwin, Skipton’s Director of Intermediary Relationships, said: “At Skipton we recognise that there is a place for interest only in the market as long as borrowers have a defined exit strategy to repay the loan. We are taking an appropriate and responsible approach to this type of lending.
“Our latest lending policy changes are a reflection of this and provide greater choice to borrowers looking at this route.”
Skipton has also refreshed its fixed rate residential core range, offering rate reductions of up to 0.22% across selected two and five-year fixed products for both purchase and remortgage.
The reduced rate products all include a free valuation and the purchase range includes a two year fix at 1.20% to 60% LTV with £995 fee, a fee free two year fix at 2.65% to 90% LTV and a fee free 5 year fix at 3.05% to 90% LTV.
For remortgage customers, the two-year fixed range now includes rates at 1.84% to 80% LTV with no fee. In addition, Skipton has also launched a new range of 2 year fixed rate residential remortgage products offering free valuations and £350 cash back, including a two-year fix at 2.69% to 90% LTV with no fee.
Kris Brewster, Skipton’s Head of Products, said: “We are pleased to launch our new residential Interest only range, which are ideal for customers looking to manage their assets more effectively.
“We’re also delighted to lower rates across our two and five year fixed rate core residential products as well as offering a new residential remortgage range offering £350 cash back demonstrating Skipton’s continued commitment to supporting the needs of our customers and brokers.”
