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Skipton Building Society has launched a new 95% LTV mortgage that is available through selected intermediaries.
The mortgage is a two-year fix at 5.99% with no completion fee and an application fee of £195, while remortgage customers are offered free valuation and legal fees.

Kris Brewster, head of products at Skipton, says: “This new 95% LTV product follows on from our re-launch back into this market last year and is a big reduction on the previous products we had available.

“This demonstrates our commitment to helping borrowers in this segment and is the latest in a series of innovative solutions we have offered over the past 12 months, to help borrowers overcome some of the continued challenges posed by the financial markets and economy.”

The average house price in the UK fell by 0.2% in April to reach £165,609, according to Nationwide’s monthly house price index.

The value of houses has gone down by 1.3% compared to April last year, but Robert Gardner, chief economist at Nationwide, points out prices rose by 0.6% according to the three month on three month measure, which he says is a better indicator of what going on.
“Gardner says house prices have increased and decreased over three month periods since November 2010 but this pattern is not unusual when the market is fairly static.
He adds: “There is still little evidence to suggest that price declines will accelerate in the months ahead.
“While the UK economy only managed a modest bounce-back at the start of the year, after the weather-induced contraction in late 2010, the economic recovery is expected to gather momentum.”