Skipton Buy To Let Mortgages
Skipton Buy To Let Mortgages
The Skipton Building Society was originally founded in 1853 as the Skipton and District Permanent Benefit Building Society. In 1928, the name was shortened to Skipton Building Society and the organisation continued to grow throughout the rest of the 20th century. Skipton Building Society currently offers borrowers a wide range of competitive mortgage deals.
What a Skipton Building Society buy to let mortgage offers you
A buy to let mortgage with Skipton Building Society offers landlords a number of features and benefits.
Skipton offers a range of both fixed rate and variable rate buy to let mortgages to fit your mortgage needs. Additionally, Skipton's buy to let mortgages allow landlords to build up a portfolio of up to 5 properties with a total borrowing of £1m with the society.
Skipton Building Society also gives you the opportunity to take payment holidays. If you’ve made overpayments and you are eligible, you can take a break from mortgage payments for up to three consecutive months.
If you wish to increase your mortgage in the future, Skipton Building Society also offers the option of additional borrowing for customers.
Customers of Skipton Building Society can benefit from free standard legal costs and free standard valuation, if they are remortgaging a property.
Changes to buy to let regulations
It is important to review the changes to the buy to let mortgage regulations before applying to Skipton Building Society.
The 2017 changes to the buy to let mortgage regulations, enforced by the Bank of England’s Prudential Regulation Authority, changed the way lenders review landlords’ applications.
Review of entire portfolio
Upon application, lenders will complete an in-depth review of a landlord’s property portfolio to ensure that every property is profitable. If a lender finds one or more properties in the landlord’s portfolio that does not provide a positive return, then they will refuse to provide the buy to let mortgage. It was worth noting that landlords cannot spread equity across their portfolio to cover a property that is not profitable.
Income stress test
Lenders will implement a stricter stress test than before, as an attempt to minimise the risk of landlords falling into arrears with their mortgage repayments. In order to satisfy the lenders’ income stress test, landlords will have to show that they can afford mortgage payments in the event that interest rates increase to 5.5%.
Increased rental coverage ratio
From 2017, the majority of lenders will require landlords to have a rental coverage ratio of 145% for standard buy to lets and 170% for houses in multiple occupations. This may result in additional cost and delays to an application, as lenders will only accept a rental coverage ratio that is based on a professional surveyor’s valuation.
Skipton Building Society only offers financial products that are available through their direct team. It is worth noting that there may be other Skipton Building Society financial products available through independent intermediaries, such as ourselves.
We work with most UK lenders including Skipton Building Society, which means we have access to leading buy to let mortgage rates. Additionally, we recognise that finding the right buy to let mortgage deal for you can be strenuous and time consuming. We can provide personal advice and guidance to help you through every stage of the application and beyond it.
If you feel like you would benefit from the assistance of one of our buy to let mortgage advisers, fill in our call back request form. Alternatively call us directly on 0117 403 4474 for a FREE initial consultation.