Skipton offers 95pc new build loan

The product, a two-year fixed rate deal, will be available to customers through Connells’ national team of mortgage consultants. It will also be offered by Connells’ subsidiary The New Homes Group which specialises in new build homes, to purchasers from its housebuilder clients.

Key product features

• 2-year fixed rate of 5.99% up to 95% LTV;
• £195 application fee, no completion fee;
• Fixed until 30th November 2013;
• Maximum loan size £300,000;
• Available to first-time and next-time buyers purchasing a new build home
• Early Repayment Charge: 3% until 30th November 2013;
• Overpayments of up to 10% per annum allowed without penalty during product term;

Adrian Scott, Connells’ mortgage services director, believes there is an urgent need for offerings like this to help return the housing market to health.

He said: “New build homes are an essential ingredient of a buoyant housing market because they boost the availability of quality housing in general, and for groups such as first-time buyers in particular.

“As the leading agent for the sale of new homes acting for over 250 different developers from virtually all major plcs to very small companies, we know builders are struggling to facilitate purchases at the moment because of the dearth of viable loans for first-hand properties.

“This new offering in partnership with Skipton is our way of helping to alleviate this deadlock and open up possibilities for borrowers. Together with Skipton, we’ve been offering mortgages for low-deposit borrowers for some time now but we’re delighted to be able to now extend that support to the new build arena.”

Kris Brewster, Skipton’s head of products, added: “As a mutual, we believe it’s our job to enable homeownership and since the spring we’ve been offering one of the only low-deposit mortgages available, and at a very attractive rate with low fees.

“We believe the market has now stabilised sufficiently to make extending this to new builds a possibility, subject to our usual prudent lending criteria. Builders are a vital cog in the chain of the housing market.

“Without them, we wouldn’t have the kind of starter homes which enable first-time buyers to get a footing on the housing ladder – or quality new homes for people ready to move up to the next rung. And we all know how vital they are to overall housing market health.

“So, we’re pleased to be at the forefront of providing solutions again through this latest partnership with Connells.”