Skipton mortgage review: Key features, fees and latest interest rates

7 min Read Published: 16 Dec 2022

What is Skipton Mortgages?

Skipton mortgage reviewSkipton Building Society began providing savings accounts and mortgages to the people of Skipton in 1853. It has over 85 branches and is the 4th largest building society in the UK. In addition to savings and mortgage products, Skipton provides financial planning & advice, insurance and legacy planning for its customers. As a building society, Skipton is owned by its members and as such acts as a mutual financial organisation.

Skipton Building Society was named High Street Savings Provider of the Year 2022 at the Moneyfacts Consumer Awards. Skipton mortgages received the accolade of Best National Building Society at the what Mortgage Awards 2021 as well as receiving "highly commended" for the First-time Mortgage Buyers' Choice at Moneyfacts Consumer Awards 2022.

Skipton mortgages can be arranged by first-time buyers, home movers and those looking to remortgage or finance a buy-to-let property. Skipton also offers mortgages for those using government schemes to buy their first home.

Skipton Mortgage key features

  • 2, 3 and 5-year fixed rates available
  • Maximum term is 25 years for interest-only mortgages and 40 years for repayment mortgages
  • Terms can extend to a maximum of age 75 and age 80 with pension income
  • Maximum income multiple is 5
  • A personal adviser allocated to provide financial advice to each applicant
  • Valuation fees begin at £156 for £100,000 and increase for larger mortgage values
  • Residential, buy-to-let and government scheme purchases covered
  • Applications from self-employed, professional sportspeople, locum medical professionals as well zero hours contracts considered

Skipton Mortgage pros and cons

Pros Cons
tick Competitive fixed-rate deals

tick Up to 10% overpayment allowed during fixed deal periods

tick No valuation fee for some standard mortgages

tick Green lending allows up to £50,000 additional borrowing to support energy efficiency projects

cross Adverse credit is unlikely to be accepted by Skipton

cross Guarantor applications not accepted

cross No capital raising for debt consolidation

What types of mortgages does Skipton offer?

Skipton Building Society offers a range of residential and buy-to-let mortgage products to suit different application types.

Skipton's residential mortgage product range covers a straightforward home purchase as well as Let to buy - Residential, Shared Ownership, Right to buy, Help to buy (includes Forces and Government help to buy), Discounted, Tenant and Family purchases.

The buy-to-let mortgages offered by the Skipton Building Society can be arranged by first-time landlords as well as portfolio landlords but Skipton allows a maximum of 10 properties within the portfolio of which a maximum of 5 can be held with Skipton. Buy-to-let applicants must earn a minimum of £20,000 unless they are portfolio landlords in which case they must earn a minimum annual income of £45,000 gross each or £60,000, jointly.

Skipton mortgage repayment options

Skipton Building Society offers interest-only and repayment (capital and interest) mortgages as well as options to arrange your mortgage on a part and part basis so that some is repaid on an interest-only basis while the rest is repaid to reduce the capital and pay the interest.

How much can I borrow with Skipton Mortgages?

If your earnings are £40,000 or less or if the loan to value is more than 90%, the amount you can borrow is capped at 4.49 times your income. Loans are capped at 4.75 times income if you have an income of between £40,000 and £80,000 and if the loan to value is between 85% and 90%. For Help to Buy and Shared Ownership applications the maximum you can borrow is 4.5 times your income. Mortgage applications outside all of these parameters can loan up to 5 times income.

What is the maximum loan size and loan-to-value (LTV) for a house purchase with Skipton Building Society?

Maximum loan amount Maximum loan to value (%)
Up to £600,000 95%
£600,001 - £800,000 85%
£800,001 - £1,000,000 80%
Upwards of £1,000,000 75%

Most application types are capped at a 95% loan-to-value on house purchasing except Help to buy purchases which are capped at 85% and Right to buy and Low-cost initiative for First-Time (LIFT) buyers applications which are capped at 90% loan-to-value.

Second home purchases for personal or a dependent relative's use are capped at a loan-to-value of 75%.

What is the maximum loan size and loan-to-value (LTV) for remortgages with Skipton Building Society?

Type of remortgage Maximum loan to value (%)
No additional borrowing 90%
Home Improvements / Staircasing / Equity transfer 75%
Other capital increase 75%

Skipton Building Society mortgage rates

Mortgage rates offered by Skipton Building Society are competitive with a wide range of rates to choose from including some with cashback offers. Skipton mortgage product fees vary between £495 and £1,995 but there are also a number of fee-free products to choose from.

It can often be helpful to work out the overall cost of the mortgage which will assess the interest rate as well as other costs associated with valuations, product and legal fees. The best way to find the most competitive mortgage deal is by going through an independent mortgage broker. You can search for one locally or submit a request online with Habito* - an online mortgage broker that searches for the best rates for your particular circumstances and may even be able to access rates that are not available directly for mortgage customers.

Rates change regularly so do take the time to search current rates using our Mortgage Rate Comparison Tool.

  • 2-year fixed rate up to 75% LTV at 4.99% with a product fee of £995
  • 5-year fixed rate up to 80% LTV at 4.98% with no fee
  • 2-year fixed rate buy-to-let up to 75% LTV at 5.37% with a product fee of £995

Skipton's current reversion rate is 5.89% and is applicable once the period of an initial deal ends.

Is it hard to get a mortgage with Skipton Building Society?

Skipton mortgage applications are assessed using their specific lending criteria which isn't overly strict but is unlikely to accommodate borrowers with certain kinds of adverse credit history. While Skipton may accept mortgage applications from those with minor blemishes to their credit reports such as a small value missed payment, those with debt management plans or payday loans are unlikely to be accepted.

The application process is a speedy one and Skipton adopts technology to help housebuyers upload documentation easily to them and the online portal also provides customers with easy access to check the progress of their applications. The average application to offer turnaround is 8 days currently and over 30% of applications received a decision in 5 days or less.

Skipton mortgage fees

A number of mortgage products are available free of a product fee with Skipton Building Society. Where a product fee is payable, it ranges between £495 and £1,995. Application fees are non-refundable and vary for different mortgage products. If your mortgage offer is renewed or extended then your application fee will usually be transferred.

Can you make overpayments with Skipton Mortgages?

Skipton Building Society allows its fixed-rate mortgage customers to pay up to 10% in overpayments per annum without allowing for any rollover of this allowance from one year to the next. However, customers on Skipton's base rate tracker mortgages can make unlimited overpayments without incurring any early repayment charges.

Early repayment charges are calculated as a percentage of the overpayment amount and they vary between 0.75% and 6%.

What is the maximum mortgage term with Skipton Building Society?

Skipton allows a mortgage term of up to 25 years for residential mortgages as long as the term does not take the borrower beyond the age of 70 or their elected retirement age. However, you can take a repayment (capital and interest) mortgage for as long as 40 years - again, you must abide by the maximum age at expiry of the mortgage. Skipton Building Society does provide mortgage lending into retirement but this is decided on a case-by-case basis and the borrower must present evidence of earnings in retirement to qualify.

How do Skipton Mortgages check your credit rating?

Skipton Building Society uses an open banking feature with Experian that allows mortgage applicants to share their banking records and credit history as part of the mortgage application. The open banking feature gives Skipton access to payment history and income information without the need for mortgage applicants to provide paper copies which can greatly speed up the process.

A credit check is a normal and necessary part of your mortgage application and it is wise to check your specific records with Experian, Equifax and TransUnion before submitting your application. This will go a long way towards avoiding delays or declines to your mortgage application due to the credit information that is held about you. Any errors or omissions can be rectified by contacting the credit reference agency with current and correct details but may take some time.

Do Skipton Mortgages offer mortgages to people with bad credit?

It is unlikely that Skipton will offer a mortgage to anyone with all but very minimal adverse credit events. Debt management plans, county court judgements and defaults must meet strict time parameters and Skipton Building Society will also assess the value of these transactions. Payday loans used in the last 2 years, for example, would result in a decline to your mortgage application.

Although issues of poor credit history can affect your mortgage application, there are a number of specialist mortgage lenders who may stretch to parameters that mean you can get the mortgage you are seeking. To avoid disappointment, it is wise to contact an independent mortgage broker with all of your credit information as they will be able to source the lender who will offer the best rates for your particular circumstances. Often brokers can have access to mortgage deals that are otherwise unavailable to direct mortgage customers.

Skipton Building Society is likely to accept your mortgage application as long as you meet the following criteria:

  • 1 CCJ in the last 3 years that was £500 or less and is now satisfied
  • 2 CCJs that total no more than £2,000, occurred more than 3 years ago and are now satisfied
  • IVAs and Bankruptcies must have been discharged more than 3 years ago
  • No indication of credit limit breaches and no arrears within the last 6 months
  • 1 default of less than £200 that occurred more than 12 months ago and is satisfied
  • Mortgage or secured loan payment arrears in the last 6 months declined
  • Mortgage or secured loan payment arrears of 2 months or more in the last 2 years declined

The above is not an exhaustive list and each criterion is also subject to your overall credit score.

Skipton Mortgages customer reviews

Skipton Building Society scores 4.4 out of 5.0 stars on independent customer review site Trustpilot, based on over 15,000 reviews making it "excellent" overall. The reviews cover a range of Skipton customers from banking, mortgages and financial advice. Skipton Building Society is ranked 11th out of the 16 best mortgage lenders that are reviewed on Trustpilot and 16th out of 46 of the best banks reviewed on Trustpilot.

Summary

Skipton Mortgages are a good lender with a large number of mortgage customers who cite the ease of application and convenience of the online portal and app that allow customers to keep an eye on their mortgage affairs as reasons for their positive experience. However, mortgage customers with adverse circumstances or specific lending needs may find that Skipton's mainstream qualifying criteria do not suit them.

 

 

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