Mortgage lender Skipton for intermediaries have returned to the mortgage market along with other lenders like NatWest, Halifax, Barclays and others since the government tax U-turn announced yesterday. Skipton have announced a new mortgage range, focusing on residential loans and emphasising lending at higher loan to values.
Yesterday the Chancellor of the Exchequer Kwasi Kwarteng announced that he would be scrapping his idea to cut taxes for higher earners in the UK after a massive backlash from financial institutions such as the Bank of England who claimed his cuts would only stoke the recession fire. As a direct result of the tax cuts, the BOE raised interest rates and forced many mortgage lenders to temporarily pull out of the market while they re-grouped and re-structured the mortgage products and rates that they currently offered.
What Have Skipton Said About Their New Mortgage Range?
Head of mortgage products at Skipton Charlotte Harrison has commented:
“After temporarily withdrawing from the market last week, we promised we’d return as quickly as we could and that’s what we’re doing. We’ve prioritised getting 5-year fixes into the market first, as our broker partners are telling us that’s what their clients need most. Being member owned, we’re not answerable to shareholders. This means all the decisions we make are based on the long-term best interest of the society and our customers. Having protected our service levels and repriced our range following the changing market conditions, I’m pleased we’re back continuing to support borrowers during such fluctuating times.”
Unfortunately for those hoping for Skipton to announce an ultra low rate new mortgage range, that is not the case. The rates that Skipton have announced are pretty much in keeping with the rates that other lenders have already announced although, because of the focus on high loan to value, Skipton have upped their rates to almost 6% across the new product range. Here is a round up of the new products:
The New Range
- Residential 75% LTV, £995 fee, 5.85% (with a max loan of £3m)
- Residential 80% LTV, £995 fee, 5.89%
- Residential 90% LTV, £995 fee, 5.99%
- First Homes England 95% LTV, £495 fee, 5.95%
What Do The Mortgage Professionals Say?
Content and communications manager at Oportfolio Mortgages Louis Mason had this to say:
“I, like many other people in the mortgage and finance industry, breathed a sigh of relief yesterday when lenders started to return to the market! After all the commotion and blind panic that happened last week, I’d be lying if I said we weren’t all a little worried. But, thankfully it seems that lenders have regained a little bit of confidence since the government backtracked on their tax cuts for higher earners. Yes, the rates on Skipton’s new mortgage range are higher than most people would like but that’s going to be the status quo for the time being and getting your mortgage secured, fixed and in place to navigate any future rate increases should absolutely be your priority.”
If you want to explore your options when it comes to new mortgage rates and products being offered by lenders returning to the market, please feel free to give our helpful and knowledgeable advisors a call today to see how we can help.