The Skipton Building Society announced today that it has cut the costs for customers seeking to take advantage of its buy-to-let mortgages.

Borrowers looking for a two-year fixed-rate buy-to-let mortgage with 70 per cent or less loan-to-value (LTV), will now receive interest rates of 3.89 per cent, compared to 4.09 per cent previously, as well as a £245 application fee and £2,250 completion fee. Customers can also take a low fee alternative, with a fee of just £750, but a 4.29 per cent interest rate.

It is also offering a three-year fixed rate buy-to-let mortgage with the same LTV at an interest rate of 4.29 per cent, with an application fee of £245 and a completion fee of £1,050 – and there is a five year deal with a 4.59 per cent rate, a £245 application fee and a £2,250 completion fee.

All of these products will allow overpayments of up to 10 per cent every year without any penalty accruing.

The building society’s head of products Kris Brewster explained why the organisation was targeting its buy-to-let products for lower costs.

“We recognise that landlords play a vital role in bringing competition and vitality to the struggling mortgage market – as well as providing private letting options for the first time buyers of the future,” he said.

“We’re also giving people more flexibility around their choice of product term – with the same rate applicable to the two and three year products, in return for a slightly higher fee for the longer term option.”

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