"At first glance, a lender dipping its toes back into this arena is good news. However the promise of 95 per cent lending is not all it seems.
"As is so often the case, if it looks too good to be true, it probably is and, on closer inspection, Skipton isn't really offering a 95 per cent deal at all. Prospective buyers will have to deposit 20 per cent of the value of the property in a Skipton savings account, which only pays 4.85 per cent.
"I suspect most of the potential buyers considering this deal would have to borrow the sum from their parents - and for properties over £175,000 the savings balance would even exceed the £35,000 amount protected under the Financial Services Compensation Scheme.
"If you have a parent willing to commit such significant sums of money to a tied savings account, you might as well use the money as a deposit and get a better mortgage elsewhere.
"Skipton has proved the devil really is in the detail with this ‘75 per cent mortgage by another name'. Sadly, the offer is all spin and no substance and will only suit a tiny minority of potential buyers."
