Skipton to lend on new build flats in buy-to-let criteria shake-up

Skipton says the changes follow feedback from brokers who have been seeing trends from their clients with an appetite to purchase new build flats to rent out due to the environmental and energy efficiency advantages.

Skipton will now lend on new build flats up to 75% LTV, and has increased the minimum buy-to-let property value from £50,000 to £75,000 as part of the changes.

Additionally, on buy-to-let fixed rates of five years or longer, stress rates have reduced from 5% to 4.5%.

The changes follow the recent enhancement of Skipton's shared ownership lending criteria.

John Scrivens, Skipton’s intermediary lead, said: “At Skipton we regularly seek feedback from brokers, and we have seen a real shift in that feedback recently, the buy-to-let market is changing and the topic of more energy efficient properties is becoming a regular conversation point with landlords.

"It is, therefore, really exciting that not only are we entering the new build flat market for buy-to-let but we are keeping things simple by lending up to 75% on them too. This is in line with our maximum LTVs on buy-to-lets and is our way of making things easier for you.”