This morning another lifeline was thrown to the UK new build market. A market that has certainly felt the strain of the cost of the struggling economy over the last year. In an email to brokers across the country this morning, Skipton Building Society has announced the expansion of its mortgage offerings for high loan to value new build purchases. Brokers received a message this morning, revealing that from the 11th of December 2023 the society will now accept applications up to 95% Loan-to-Value (LTV) for New Build flats, supplementing their existing 95% mortgages for New Build houses.
Jonathan Evans, National Account and New Build Lead at Skipton, expressed the society’s commitment to supporting aspiring homeowners facing deposit hurdles. He stated, “At Skipton, we understand the challenges in the New Build market and the deposit hurdles facing prospective homeowners. We’re now supporting New Build flats at 95% LTV, unlocking more opportunities for home ownership.”
Key Features of Skipton’s 95% Mortgages For New Build Properties
A key player in the new build market, Skipton has always offered competitive and attractive mortgage products for people looking to purchase a brand-new home or brand-new investment property. Here are some of the current perks that Skipton offer for both 95% mortgages and lower loan to value property finance products.
- Offer Duration: Skipton’s New Build mortgage products come with a standard 9-month offer duration, with a 3-month extension available, subject to up-to-date documents and re-scoring.
- Swift Underwriting: New Build applications benefit from a 48-hour underwrite queue, with additional documents reviewed within a 24-hour target.
- Valuation Off Plan: The society allows valuations off plan, and there is no charge for a standard property valuation for mortgage purposes if the property is valued at less than £1.5 million.
- Fee Structure: Skipton offers no application fees on all products and no completion fees on selected ones.
- Product Reservation: Clients selecting a product at the application stage have it reserved for the duration of the offer, including any extension.
Skipton’s New Build Policy Highlights
Here is a breakdown of the more general policy highlights that Skipton offer on new build houses and flats:
- LTV Acceptance: Skipton accepts applications up to 95% LTV for both New Build houses and flats.
- Special Mortgage Products: The Track Record mortgage allows borrowing up to 100% LTV for New Build houses but is not available for New Build flats. Shared Ownership and First Homes England mortgages can be used to borrow up to 95% LTV for both New Build houses and flats.
- Term Limits: A maximum term of 40 years (25 years for any interest-only element) applies.
- Minimum Property Values: For flats above commercial properties, the minimum value permitted is £150k outside the M25 and £300k within the M25.
- High Rise Blocks: There is no restriction on the number of floors in high-rise blocks of flats; however, if this exceeds 5, lift access is required.
- Exposure Limit: Skipton’s exposure limit per development is capped at 20%.
The Importance of 95% Mortgages For New Build Properties
Skipton Building Society’s latest move reflects its commitment to providing a comprehensive range of mortgage products tailored to the evolving needs of homebuyers in the current New Build market. As we have already mentioned, the new build sector has struggled a lot over the past 12-months or so due to rising mortgage costs and a raised cost of living deterring some buyers from purchasing property. However, with the introduction of 95% mortgages (i.e. Low deposit loans) from Skipton, prospective homeowners have increased flexibility and access to a diverse range of mortgage options.
If you or anyone you know is considering buying a new build property with a low deposit, then please feel free to get in touch with our brokers here at Oportfolio. We are experts in 95% mortgages and new build purchases so give us a call or send us a message today to start the ball rolling.