Skipton ready to lend to novice buy-to-let landlords

Skipton Building Society is relaxing its buy-to-let lending rules just weeks after returning to buy-to-let lending, and will now lend to novice landlords, and on new-build, but excluding apartments.

The rates on the trackers start from 3.24% on 60% to 70% LTV.

The criteria assess mortgages on a rental calculation of 125% of the mortgage interest calculated at 6%. Customers are allowed a portfolio of up to five properties with Skipton, with a total value of no more than £1m.

The mutual will lend to individuals, but not limited companies, and allow capital-raising up to 70% LTV provided the additional funds are to be used for improvements or portfolio expansion.

Kris Brewster, head of products, said: “We returned to buy-to-let lending earlier this year in line with our mutual commitment to helping people to achieve their varied home-ownership aspirations, and hope the criteria changes which coincide with this new product launch will make property investment possible for even more people.

“We believe this is an excellent time to consider becoming a landlord, with rental demand soaring due to limited mortgage availability and indications that people are increasingly looking to rent until later in their lives, in keeping with the more European model of home ownership.”