Skipton re-enters buy-to-let market
With its national estate agency business, Connells Group, echoing market sentiment that the landlord sector is experiencing a resurgence, the society believes the time is ripe for doing its bit to meet the associated mortgage demand.
Sequence Lettings, which is part of the Connells Group, saw the number of people looking to rent through its 82 national branches increase by 37% in 2010 compared to the previous year. And the upward trend continues in 2011, with around 8% more tenants seeking accommodation in February compared to the same period last year.
Commenting, Kris Brewster, Skipton’s head of products, said: “Thanks to our prudent approach to lending, buy-to-let has always been a valuable and high-performing part of our mortgage portfolio. However, we decided to temporarily cease offering buy-to-let loans in 2009, as a cautious step to protect the business from the uncertainties facing the markets and economy at that time.
“However, with evidence that the housing market is beginning to stabilise, albeit with the potential for further limited house price falls later this year, we believe it’s now appropriate to make a controlled, low risk return to this space. Therefore, we have decided to offer a set of straightforward and competitive products which we hope will appeal to both existing landlords and new ones hoping to make the most of the investment opportunity this sector represents.
“We believe the buy-to-let sector is a key component of a successful housing market, with private landlords meeting a real social need and providing a vital first stepping stone towards homeownership for tomorrow’s first time buyers – who are the oil which keeps the housing market machine moving.”
- 2 year fixed rate mortgage up to 60% LTV with an interest rate of 4.49%
- 3 year fixed rate mortgage up to 60% LTV with an interest rate of 5.49%
There is an application fee of £245, payable upon application and non-refundable, and a completion fee of £1,250 payable upon completion or added to the loan.
The society is also launching an additional 2-year fixed rate buy-to-let mortgage through Connells Group at 4.44%, which is available via its national network of almost 500 estate agency branches, to people purchasing a property through Connells. All other product features are identical to the 2-year fixed rate product quoted above.