About Skipton Building Society

Skipton Building Society is an award-winning financial services provider with over 165 years of experience. They offer a wide range of mortgage products, including fixed-rate and variable-rate mortgages, to suit your individual needs and circumstances.

They are one of the UK's leading mortgage lenders with over 1 million customers in total. Skipton Building Society is committed to providing excellent customer service and offers a personal approach to banking. They have a network of branches across the United Kingdom, as well as an award-winning telephone and online service.

What type of mortgages do they offer?

Skipton’s mortgage products range fall into the broad categories below:

• First-time buyer mortgages: Including options for borrowers using a government scheme such as Shared Ownership and the First Homes Scheme.
• Remortgages: With deals for existing customers as well as those who are applying to move to Skipton Building Society from another mortgage lender.
• Homemover mortgages: A range of products aimed at borrowers who are buying a  new home or want to port their existing Skipton mortgage to another property.
• Buy-to-let mortgages: Including options for portfolio landlords, first-time landlords, and Investors purchasing specialist property types such as HMOs.
• No-deposit mortgages: Skipton’s Track Record mortgage is a specialist product aimed at people with no deposit but a history of making rent payments on time.

Skipton’s mortgage options include 2, 3 and 5-year fixed rates, as well as 2-year trackers.

Eligibility criteria

The eligibility criteria for a Skipton Building Society Mortgage can vary depending on the product type, but the general requirements for a residential mortgage are below:

• Deposit requirements: The minimum amount of deposit that Skipton will accept outside of its ‘Track Record’ deals is 5% of the property’s value.
• Credit history: Accepts most types of bad credit, with conditions, but serious issues such as bankruptcies and IVA needs to have been satisfied for 3-6 years.
• Age: Borrowers can be no older than 75 at the end of the term. If the term runs into their retirement, Skipton expects to see evidence of adequate retirement income.
• Employment history: Applicants in full-time jobs need to have been in continuous employment for at least six months, while self-employed mortgage applicants can potentially get approved for a mortgage based on just one year’s accounts.

Buy-to-mortgage criteria

Eligibility requirements for a buy-to-let mortgage with Skipton are as follows:

• Deposit requirements: Deposit requirements start at 25% of the property’s value.
• Rental income: For basic rate taxpayers, the minimum rental income must be 125% of the mortgage payments, or 145% for higher rate taxpayers and portfolio landlords.  
• Portfolio size: Skipton will not lend to landlords with 10 or more properties in total, five of which can be mortgaged with this lender. For all buy-to-let landlords, total borrowing with Skipton Building Society cannot exceed £3 million.
• Maximum loan size: The maximum size for a single loan is £1.5 million.

Skipton’s buy-to-let mortgages come in fixed and variable rate options, and are available to first-time landlords provided they have owned a home for at least six months.

100% mortgages

Skipton Building Society is well known as one of the few lenders who are willing to offer mortgages to borrowers who have no deposit. Their ‘Track Record’ mortgage is a 100% LTV deal aimed at renters who haven’t owned a home in the last three years.

The eligibility criteria for Skipton’s no deposit mortgage is as follows:

• Applicants must have clean credit
• Need evidence of making 12 monthly rent payments in a row in the last 18 months
• A maximum term length of 35 years
• Maximum borrowing of 4.49 times salary
• A maximum property value of £600,000

Skipton’s 100% mortgage is one of several options for borrowers with little or no deposit. Alternatives include borrowing a deposit or using a guarantor.

You should speak to a mortgage broker before you apply to make sure you make the right decision for your needs, circumstances and budget.

What interest rates does Skipton offer?

At the time of writing (January 2024), Skipton Building Society’s standard residential mortgage interest rates start at 4.57% for a 5-year fixed rate mortgage with 60% LTV. Rates across their range generally increase as the loan-to-value ratio rises.

Their buy-to-let mortgage rates start at 4.90% for a 5-year fixed, exclusive to existing customers who are remortgaging for green additional borrowing (75% LTV).

Want to know how Skipton’s mortgage rates compare with the competition? You can browse through their deals as well as alternatives from lenders across the market for free on Teito, then choose the one you want in real-time - get started here.
 

How much will Skipton let you borrow?

Skipton caps their maximum mortgage borrowing at between 4.49 and 5 times the combined annual income of all mortgage applicants. They reserve their highest income multiple for applications where the total income is over £80k and the LTV under 90%.
 

Are Skipton mortgages any good?

Skipton Building Society has received positive reviews from its customers, currently holding an average rating of 4.3/5 on TrustPilot, based on feedback from over 15,000 people.

Skipton’s mortgage division also received strong feedback in a survey of the market carried out by consumer group Which? The building society was ranked in joint first place out of 22 UK mortgage providers, with a customer satisfaction score of 78%.

Compare mortgage rates from Skipton today

You can use our free service to compare mortgage rates and deals from Skipton with their competitors from across the market, choose one you like in real time, and access support from one of our whole-of-market mortgage brokers at any point in the process.

Follow the steps below to browse rates in real time and choose your mortgage online:

Get started here: Then select whether you are looking for a two-year fixed-rate mortgage to buy a property or for remortgage purposes.

Specify the purpose of the property: You can compare two-year fixed-rate mortgages for residential or buy-to-let purposes, as well as remortgages.

Choose your own mortgage: Finally, tell us what stage you are at in the process and you can compare rates from across the market and choose the deal you want.

After you have selected a mortgage deal, one of our mortgage brokers will check over your application before securing an agreement in principle for you. They will be on hand to offer bespoke advice, make sure you’re getting the best deal, and oversee your application.

FAQs

Do Skipton offer self-build mortgages?

Skipton does not currently offer self-build mortgages directly. Head to our dedicated self-build mortgage page to find a lender that does provide them.

What should I do if Skipton have declined me for a mortgage?

Resist the temptation to quickly reapply, either with them or another lender, but be aware that it isn’t the end of the road for your mortgage plans. Speak to a mortgage broker to find out whether there could be grounds to renegotiate with Skipton or move your application to another lender whose products and policies are a better fit for you.

Do Skipton offer offset mortgages?

No. Head to our offset mortgages page to find a lender that does offer these.

What are the early repayment charges for a Skipton mortgage?

Early repayment charges (ERCs) might apply if you repay your mortgage early. These will be listed in your mortgage offer document/paperwork.

Depending on the mortgage product you choose, you can typically pay up to 10% of the outstanding loan amount each year without incurring any early repayment charges.