Skipton re-enters buy-to-let mortgage market

Building society Skipton has announced that is to once again offer buy-to-let mortgage products following a temporary withdrawal from the market.

Skipton ceased buy-to-let mortgage lending in 2009 due to uncertainties in the market, but says increased demand means it will now begin offering such products once again.

Its buy-to-let portfolio will include a two-year fixed rate mortgage at a rate of 4.49 per cent and a three-year fixed rate deal at 5.49 per cent, both with a loan-to-value ratio of up to 60 per cent.

Kris Brewster, Skipton's head of products, said: "With evidence that the housing market is beginning to stabilise, albeit with the potential for further limited house price falls later this year, we believe it's now appropriate to make a controlled, low risk return to this space.

"Therefore, we have decided to offer a set of straightforward and competitive products."

The news follows a recent survey by The Mortgage Works, which found that the majority of brokers predict activity in the buy-to-let mortgage market is set to increase, with 51 per cent expecting the number of new landlords to rise in 2011.