by Mark Johnston
Skipton Building Society Help First Time Buyers.
It appears that across all loan to values (LTV), the number of mortgages on the market has increased by almost one quarter year on year, with around 2,872 deals now available.
London & Country associate director of communications David Hollingworth says: “This shows a general shift in lender attitude and a gentle widening out of the risk profile.”
The governments flagship funding for lending scheme initiative seems to be finally starting to have an effect at the lower end of the mortgage market, where many lenders have in recent times been reluctant to offer competitive deals.
Jennifer Holoway, head of media relations at Skipton building society, said “faced with industry figures which put the average cost of a house in the UK at nearly £200,000, climbing on to the property ladder must seem as daunting as climbing everest”.
Therefore a raft of smaller lenders, such as the Skipton building society, have now reduced the interest rates charged on some of their fixed mortgage deals.
So to mark its 160th anniversary Skipton building society is now offering a two year fixed rate deal at just 3.99 per cent to borrowers with only a 10 per cent deposit.
There is no arrangement fee to pay and the deal also comes with £160 cashback upon completion.
Mark Harris, the chief executive of SPF Private Clients said: “This is a market leading rate for those who are looking to borrow 90 per cent of their property’s value. With no fee either this is likely to be popular with those who have modest deposits.”
Research reveals that in 2012 the Skipton building society helped around 1,833 first time buyers get on to the property ladder.
Norwich and Peterborough building society is also offering a two year fixed rate at 1.89 per cent, but this product is only available up to a maximum of 65 per cent loan to value (LTV), so borrowers need at least a 35 per cent deposit or equity. The deal comes with an arrangement fee of £995.
Teachers Building Society has recently launched a two year discount of 3 per cent off its standard variable rate (SVR) of 4.99per cent. The deal is currently charged at 1.99 per cent and is available up to a maximum of 60 per cent loan to value (LTV) and comes with a fee of £1,898.
The Skipton Building Society has also increasing its maximum loan size for first time buyers from £300,000 to £500,000 for 90 per cent loan to value (LTV) mortgages.
Until March 2012, it lent to 95 per cent loan to value (LTV) but pulled out due to unexpected demand for the products.
A spokeswoman for the building society says there are no immediate plans to reintroduce 95 per cent loan to value (LTV) products but the matter is constantly under review.
Skipton building society head of products Kris Brewster says: “We are constantly monitoring the marketplace and adjusting our products and interest rates to ensure they remain among the most attractive available.”
Story link - Skipton Building Society Help First Time Buyers.
Related stories to : Skipton Building Society Help First Time Buyers.