Skipton Building Society has updated its lending policy to allow for mortgages on new build buy to let flats for the first time, as well as changes to BTL stress rate calculations.
The changes come as Skipton reacts following feedback from brokers and the everchanging conditions and requirements of the market.
Brokers have been seeing trends from their clients with an appetite to purchase New Build Flats to rent out due to the environmental and energy efficient advantages.
BTL Policy changes happening on 29 March:
- Now lending on BTL New Build Flats up to 75% (having not loaned on them at all until now).
- On 5-year fixed rate products or longer, the stress rates have reduced from 5% to 4.5%.
- BTL minimum property value has increased from £50,000 to £75,000.
Tony Field, sales director at Dynamo, said: “It’s an exciting time to be working with Skipton as they push forward with new buy-to-let criteria.
“The introduction of lending on New Build flats is a very positive move that will undoubtedly be broadly welcomed by investors in the sector.
“With stress rate calculations also decreasing and greater flexibility being allowed on terms, Skipton are clearly demonstrating their ongoing support of the landlord community and the wider buy-to-let market.”
John Scrivens, Skipton’s intermediary lead, added: “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.
“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 LTV’s on buy-to-lets and is our way of making things easier for you.”
