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Residential and Buy-to-let Mortgage Criteria

Please select the section you are interested in:-

Credit history

The following is allowed:

Debt Consolidation

Debt Consolidation - Any debt consolidation by way of an additional borrowing or re-mortgage application is no longer acceptable in any form. For clarity this means any form of unsecured debt and secured debt whereby it has been used for personal expenditure. We will accept business where the customer can prove that any unsecured debt was used for Home Improvements within the last 3 months.

Capital raising to help fund deposits for homes for children, holiday homes etc remains acceptable up to a maximum LTV of 75%.

We reserve the right to seek estimates for home improvement works and can instruct inspections (for which a fee is payable) to confirm the work has been carried out prior to release of funds.

Direct Debit

All interest rates include a Direct Debit discount of 0.25%. If the Direct Debit is cancelled for any reason, the Direct Debit discount will be removed.

ERC (Early Repayment Charges)

Where no ERC applies or the ERC period has expired, unlimited overpayments can be made and interest upto the end of the month of redemption is payable on redemption.

First Time Buyers

For first time buyers, products are only available on a capital and interest (repayment) basis. Maximum loan available is £250,000, minimum 12 months continuous employment. For first time buyer joint applications all applicants must be first time buyers. A first time buyer is defined as someone who has never owned a property.

Guarantors Yes
UK Resident Only Yes
Credit Score Marginally Good, Good and Very Good
Length of Employment Minimum 12 months continuous employment
Affordability Ratio 50%
Minimum Property Value £50,000
Max Advance Amount £250,000
Maximum Term 35
Repayment Methods Capital and Interest only
Mortgage Experience No

Further Information

High LTV Policy

A high LTV is defined as above 75%.

Guarantors Yes
UK Resident Only Yes
Credit Score Marginally Good, Good and Very Good
Length of Employment Minimum 6  months continuous employment
Affordability Ratio 50%
Minimum Property Value £50,000
Max Advance Amount Normal LTV
Maximum Term 35
Repayment Methods Any acceptable repayment method (Capital & Interest only if term exceeds 25 years)
Mortgage Experience Yes

Home Conveyancing service - England and Wales

No charge for most remortgages

If you’re moving your mortgage to Skipton but not moving home then you won’t usually have to pay anything for the legal costs involved. In other words, it’s free to you as we pay the standard legal costs.

Please be aware that legal work relating to certain matters not usually involved in a standard remortgage is not included in this offer eg transfers of equity or deeds of postponement. The conveyancers will offer fixed prices for certain “elevated services” – please ask your mortgage adviser for further details.

Some payments to third parties may still have to be paid. Please read notes 1 and 2 for a full explanation. If the loan is above £500,000 additional costs may be payable.

Occasionally we may offer certain products with other benefits where we do not pay the legal costs. Your mortgage adviser will tell you if this is the case.

Guaranteed fixed price for sales or purchases

If you are moving house, using a Skipton Home Conveyancing Service Conveyancer they will deal with your particular needs without running a legal meter –so you only pay a fixed price dependent upon the property value.

The costs are as follows –

£1 - £50,000

£280

£50,001 - £100,000

£350

£100,001 - £150,000

£410

£150,001 - £200,000

£425

£200,001 - £300,000

£450

£300,001 - £500,000

£575

Above £500,001

by negotiation

If there is a Sale and Purchase, two fees need to be applied according to property values.

In addition supplements apply;

All costs are exclusive of VAT and disbursements (ie third party payments)

Example of Conveyancing Service costs;

No time wasting visits

You won’t have to waste any holiday time or lunch hours visiting your conveyancer, as they’ll keep in touch with you by phone and post. What’s more, they’re only ever a phone call away should you have any questions.

No completion, no charge!

If at any time your transaction falls through, then you won’t have to pay any legal fees. Some payments to third parties or which relate to matters not usually involved in a re-mortgage or purchase may still have to be paid. Please read notes 1, 2 and 3 for a fuller explanation.

Your legal adviser

For your peace of mind, a panel of experienced and respected firms take part in the Skipton Home Conveyancing Service. Your Skipton adviser will let you know which one will act for you.

The panel consists of:

Find out more

To take advantage of the Skipton Home Conveyancing Service for sales and purchases all you have to do is visit your local Skipton branch or call 08457 171777*.

Remember, if you decide to take advantage of this service, you should notify Skipton before passing any of our conveyancer details to your estate agent or financial adviser. This will enable us to ensure you receive the full benefit of this service, by ensuring all the correct contact details are given at the start.

Important Notes

The Skipton Home Conveyancing Service is only available where you choose to jointly instruct the Society’s recommended conveyancer, as these fees have been specially negotiated with them.

The remortgage work is undertaken by the conveyancer on a ‘reduced title check’ basis which the Skipton considers is sufficient to assess its security. If for any reason you wish the conveyancer to carry out a full title check on your behalf they can do so but any additional fees involved are payable by you.

We comply with the Solicitors Regulatory Authority Code of  Conduct 2007 and the Council for Licensed Conveyancers Code of Conduct Rules 2005. Any conveyancer to whom we may refer you is an independent professional from whom you will receive impartial and confidential advice. You are free to choose another conveyancer.

  1. Free legal fees for remortgages refers to the Society’s legal fees and disbursements in connection with the taking of a mortgage which are usually payable by the borrower. Any fees or disbursements incurred which do not relate to the mortgage eg first registration of title, correction of title defects, dealing with any legal or beneficial interests (other than granting a mortgage) are payable by you eg transfers of equity. If you are aware that any of these may apply, please ask your adviser to ask your conveyancer for details of fees which may apply. The conveyancer may not be able to give definite cost figures without examining the legal title.
  2. Any fees payable to an existing lender (eg deeds production fees or early repayment charges) are payable by you. If you have a leasehold property and a fee has to be paid to a management company or landlord for information, then this will be payable by you.
  3. In addition to the fixed fees on sales and purchases, there will be disbursements (payments to third parties) payable by you such as search fees, stamp duty, land registry fees or where a leasehold property is involved, payments to a management company or landlord for information. There may be some matters which fall outside the scope of a normal sale and/or purchase. Your conveyancer will advise you of all costs that apply to your individual situation at the appropriate time and will advise you of any payments required from you in advance.
  4. Please note that these fees will only apply up to a maximum property value of £500,000 for a sale or a purchase. Above this we will ask the conveyancers to provide a quote. On a remortgage if the loan is above £500,000 some additional fees may be payable by you.
  5. A £25 CHAPS fee will be payable on release of the mortgage loan, and product fees such as application and/or completion fees may be payable to the Society. Remember, if you decide to take advantage of the sale or purchase service, you should notify the Skipton before passing any of the conveyancer details to your estate agent. This will enable us to ensure you receive the full benefit of this service.

Home Conveyancing service – Scotland

No charge for most remortgages

If you’re moving your mortgage to Skipton but not moving home, then you won’t usually have to pay anything for the legal costs involved. In other words it’s free to you because we pay the standard legal costs.

Please be aware that some legal work relating to matters not usually involved in a standard remortgage (eg transfers of equity or deeds of postponement) are not included in this offer. The conveyancers will offer fixed prices for certain “elevated services”. Please ask your mortgage adviser for further details.

Occasionally we may offer certain products with other benefits where we do not pay the legal costs. If this is the case, your mortgage adviser will have full details. Some payments to third parties may still have to be paid. Please read notes 1 and 2 for a full explanation.

No time wasting visits

You won’t have to waste any holiday time or lunch hours visiting your solicitor, as they’ll keep in touch with you by phone and post. What’s more, they’re only ever a phone call away should you have any questions.

No completion, no charge!

If at any time your transaction falls through, then you won’t have to pay any legal fees. Some payments to third parties or which relate to matters not usually involved in a re-mortgage or purchase may still have to be paid. Please read notes 1, 2 and 3 for a fuller explanation.

Your legal adviser

For your peace of mind, an experienced and respected firm, Walker Laird, is used in the Skipton Home Conveyancing Service.

Find out more

To take advantage of the Skipton Home Conveyancing Service for remortgages in Scotland all you have to do is visit your local Skipton branch or call 08457 171 777*.

Important Notes

The Skipton Home Conveyancing Service is only available where you choose to jointly instruct the Society’s recommended conveyancer, as these fees have been specially negotiated with them.

The remortgage work is undertaken by the conveyancer on a ‘reduced title check’ basis which the Skipton considers is sufficient to assess its security. If for any reason you you wish the conveyancer to carry out a full title check on your behalf they can do so but any additional fees involved are payable by you.

We comply with the 1991 Practice Rules (Fee Sharing Rules) published by the Law Society of Scotland and any solicitor to whom we may refer you is an independent professional from whom you will receive impartial and confidential advice. You are free to choose another conveyancer but the fees quoted for the Skipton Home Conveyancing Service will not apply.

  1. Free legal fees for remortgages refers to the Society’s legal fees and disbursements in connection with the taking of a standard security which are usually payable by the borrower. Any fees or disbursements incurred which do not relate to the standard security eg first registration of title, correction of title defects, dealing with any legal or beneficial interests (other than granting a standard security) are payable by you. If you are aware that any of these may apply, please ask your adviser to ask your conveyancer for details of fees which may apply. The conveyancer may not be able to give definite cost figures without examining the legal title.
  2. Any fees payable to an existing lender (eg deeds production fees or early repayment charges) are payable by you. If you have a leasehold property and a fee has to be paid to a management company or landlord for information, then this will be payable by you.
  3. A £25 CHAPS fee will be payable on release of the mortgage loan, and product fees such as application and/or completion fees may be payable.
  4. If the loan is above £500,000 some additional fees may be payable by you.

How much can your clients borrow?

The Society uses affordability as its main means of assessing a clients ability to meet the loan payments. The Society uses an assessment of income and expenditure as the main means for affordability and you should refer to the Mortgage Service Centre for assistance with regards to any loan outside of the income multiple guide.

For further assistance please click here to use the affordability calculator.

Our DIP form will advise your clients that a full credit search will be carried out and consequently a soft footprint will be left on their credit history. It is therefore imperative that this form is not used solely to obtain a credit search and is only used in an instance where your clients situation is outside of our policy.

At application stage a standard credit search is carried out. This is valid for three months and will leave a footprint. Should the application take more than three months to complete another credit search will be carried out prior to completion which will leave a further footprint.

Interest Only options

If any of your clients request an Interest Only option, these can be arranged on all mortgages and remortgages (except first time buyers) which meet the individual product specifications. There must be a satisfactory repayment vehicle in place to repay the loan. The following repayment vehicles are deemed acceptable:

Please also take into account that whilst life cover is not obligatory, the Society would recommend that some form of mortgage protection is considered on all products.

The Society does not require security over life policies.

Leasehold expiry term

Our policy requires an unexpired leasehold term remaining after the mortgage of at least 40 years.

Legal fees package

If your client is selling or purchasing a property we have a fixed scale legal fee package in England and Wales. Incentives are available for referrals.

To find out more please contact your local Business Development Manager or local Skipton representative.

Loan to value parameters

Our criteria on maximum loans for residential properties are as follows (subject to product conditions and satisfactory credit ratings).

The below are applicable to applicants with very good, good & marginally good credit scores. Loans up to £1,000,000 will be considered.

Loan Amount Marginally Good Good Very Good
Up to £250,000 95%** 95%** 95%**
£250,001 - £400,000 85% 85% 85%
£400,001 - £750,000 80% 80% 80%
£750,001 - £1,000,000 Decline 75% 75%

** LTV’s are subject to product maximum.

Maximum age

Mortgages can be considered taking clients beyond normal retirement age, however there must be clear evidence of the client's ability to repay the loan. Terms will not be agreed or terms maybe amended if it is clear that an applicant's financial circumstances after retirement will affect their ability to repay the loan.  Applicants will be required to indicate their expected age of retirement and provide evidence of what their expected income in retirement will be. Where interest only is required applicants must evidence a suitable repayment vehicle which is available to repay the loan within the agreed term. In most instances we would expect mortgages to have been repaid by age 75. For further information and prior to submission please contact your local Business Development Manager on 0800 87 66 010.

Maximum term

The maximum term for a mortgage is up to 25 years, however, 35 years will be considered on a capital and interest basis only, providing there is evidence of ability to repay.

Mortgage Payment Date

In special circumstances (to be agreed with our Collections Department) it may be possible as a concession, for borrowers to opt for a later payment date in the month (12 or 20). If borrowers do elect for this and the Society agrees to the later payment date, then the borrower should be mindful that they will incur extra interest because their payment is not made on the first of the month in which it is due.

Mortgage Tariff of Charges

To view Mortgage Tariff of Charges click here.

Payment on completion

A letter will be issued to borrowers notifying them that completion has taken place. The first payment will be collected by Direct Debit on the first of the month following completion. Interest from completion to the end of that month should be paid by cheque to our Mortgage Repayments. Full details are included in the letter of completion.

Portability

We will only pay procuration fees on the amount of net new lending when a case is ported.

Standard Variable Rate

Our Residential Standard Variable Rate is currently 4.95% inclusive of Direct Debit discount.

Valuation Fees

The fees are payable with the application and include a non-refundable administration charge. The maximum administration charge is £245. The applicable administration fee will be displayed in your client’s KFI.

The minimum property value is £50,000.

PROPERTY VALUE STANDARD VALUATION HOMEBUYERS PLUS STANDARD VALUATION BUILDING SURVEY PLUS STANDARD VALUATION BUY-TO-LET STANDARD VALUATION FEE
Up to £100,000 £305 £485 £745 £365
£100,001 - £150,000 £380 £550 £770 £390
£150,001 - £200,000 £400 £580 £830 £430
£200,001 - £250,000 £455 £685 £975 £490
£250,001 - £300,000 £475 £705 £995 £490
£300,001 - £350,000 £525 £815 £1,140 £555
£350,001 - £400,000 £545 £835 £1,160 £555
£400,001 - £450,000 £590 £955 £1,305 £615
£450,001 - £500,000 £610 £975 £1,325 £615

On cases where the property value is above £500,000, please speak to your Business Development Manager.

Where a product offers a free valuation for a purchase this is a standard valuation only. Available on one application per applicant(s).

Additional Valuation Fees

  1. Re-inspection Valuation £40 - the fee covers the charge made by an external valuer to prepare a report and valuation of the property for the Society in order to enable the release of a retention or stage payment. The fee is paid directly to the Society.
  2. Up to Date Valuation £60 - the fee covers the charge made by an external valuer to prepare a report and re-valuation of the property for the society. The fee is paid directly to the Society at the time an application for additional borrowing is made.

Please contact us if the applicant requires a Home Buyers Report or a Building Survey. We can arrange these with the valuer who will carry out the mortgage valuation. As the Homebuyer or Building Survey is carried out for the borrower, not the Society, the contract is between the borrower and the valuer for these services.