Lender makes changes to its stress rate calculations too
Skipton Building Society has updated its lending policy to allow for mortgages on buy-to let new build flats for the first time.
It will now lend up to 75% on BTL new build flats, and will also implement changes to its BTL stress rate calculations.
The stress rates were reduced from 5% to 4.5% on five-year fixed rate products or longer, while BTL minimum property values were increased from £50,000 to £75,000.
The changes were Skipton’s response to feedback from brokers and the everchanging conditions and requirements of the market.
Brokers have been seeing trends from their clients who want to purchase new build flats to rent out due to the environmental and energy efficiency advantages.
“At Skipton we regularly seek feedback from brokers, and we have seen a real shift in that feedback recently - the buy-to-let market is changing, and the topic of more energy efficient properties is becoming a regular conversation point with landlords,” John Scrivens, intermediary lead at Skipton, said.
“It is, therefore, really exciting that not only are we entering the new build flat market for buy-to-let, but we are keeping things simple by lending up to 75% on them too. This is in line with our maximum LTVs on buy-to-lets and is our way of making things easier.”
“The introduction of lending on new build flats is a very positive move that will undoubtedly be broadly welcomed by investors in the sector,” Tony Field, sales director at Dynamo, said. “With stress rate calculations also decreasing and greater flexibility being allowed on terms, Skipton is clearly demonstrating its ongoing support of the landlord community and the wider buy-to-let market.”
