The mutual launched the 2-year fixed rate at 5.99% through Connells, Legal & General, PMS, London & Country and Sesame in May.
Kris Brewster, head of products at Skipton, said: “This deal has been very popular; there is a market out there, particularly in London and the South East.
“But as a responsible lender, we need to balance our mutual desire to provide solutions for first and next-time buyers who have limited deposits or whose equity has been impacted by market conditions, while lending prudently in a way which ensures borrowers do not overstretch themselves and can afford to meet their mortgage obligations.
“Particularly in a market that is likely to see rates increase over the long term. In doing this I don’t think we’re going to fundamentally change the market but Skipton does aim to be at the forefront of more innovative lending.”
The Financial Services Authority revealed today that the proportion of new lending done at an LTV of more than 90% fell below 2% for the first time since Q1 last year.
Meanwhile new lending with a combination of high LTV and high income multiple also fell, to just below 1% of new lending.
Brewster said: “We recognise that a 5% deposit difference represents thousands of pounds for our members and can make all the difference when it comes to ensuring they get an affordable mortgage that’s right for their needs.”
“We aim to have a good balance between fixed and tracker business, again giving the customer more choice. We have also looked to be innovative in returning to buy-to-let lending, offering the best 95% mortgage of its kind at 5.99% and trialling a track and fix product.”
