Skipton changes buy to let criteria

25/07/2007

Skipton Building Society have rearranged the key factors by where it confirms to lend large sums of cash to buy-to-let investors, simply to make landlords increase their portfolios.

The loan to value ratio for loans of £500,000 will increase from 75 – 85 per cent, with rental income cover decreasing from 125 – 110 per cent, Skipton have confirmed this data.

During this period, landlords with more than a certain amount of properties, preferably 10, will be able to secure a buy to let residential product.

Colin Dale, building society’s head of lending spoke further, "A lot of these changes are about making it much more flexible for landlords to finance the properties they want, using the competitive mortgage deals Skipton offers, so they can get the best returns possible on their investment."

The smallest income procedures will be removed, the company stated.

The Council of Mortgage Lenders concluded that during 2006, buy-to-let mortgages in the UK rose to 330,000, this an increase of 50 per cent.

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