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Do you want to borrow up to 95% of the value of a property?

Finding a mortgage in the current market place is proving difficult for many, especially for first time buyers. Property prices remain high and many banks and building societies will only lend up to 85% of a property’s value or purchase price.

However, with Skipton’s NEW Mutually Exclusive Scheme, we will now lend up to 95% of the property’s purchase price or valuation (whichever is the lower) without you having to pay any Higher Lending Charge.

How does this mortgage work?

Providing an immediate member of your family can place an appropriate investment into our Mutually Exclusive Savings Account and is prepared to give the Society a charge on that account, you can choose any of the products currently available in our residential mortgage product range up to 85% loan-to-value (LTV). Subject to our normal affordability criteria, we will then lend you up to 95% of the property’s valuation or purchase price (whichever is the lower) providing you take the mortgage on a Capital and Interest repayment basis.

For full details of our current mortgage product range, please see our Mortgage Rates and Features Guide.

How much will have to be invested?

In order to qualify for this increased LTV, without any Higher Lending Charge, we ask that an immediate family member invests an amount equivalent to the difference between 75% and the LTV you require, in our Mutually Exclusive Savings Account.

So, for example, on a £100,000 property value, where 95% is required and the applicant fits all criteria, we would require a charge against £20,000 of invested funds.

How does the savings account work?

The interest rate on our Mutually Exclusive Savings Account matches the rate payable on our existing Branch Access Account (excluding bonus) currently 2.50% gross pa/AER variable. We will accept transfers from existing Skipton savings accounts, however, no further investments or withdrawals are allowed from this account whilst the charge is in place^.

Interest from the account will be paid on an annual basis into a suitable Skipton Building Society account or other bank account.

All funds must remain in this account until such time as the charge is released. The charge will no longer be necessary if, in the future, your loan-to-value has fallen to a level that is satisfactory for us, either through increasing house prices or overpayments on your mortgage. We will review the charge in response to a written request from both the borrower and investor. If the charge is released, the account will revert to our normal Branch Access Account (excluding bonus).

Why is a charge on a savings account required?

At the present time house prices are unpredictable and that is why an increasing number of lenders are restricting their maximum LTVs. We are prepared to go to the higher LTV only by taking this additional security against invested balances. Additional security means that, if you were to default on your mortgage, we would have the option to take the invested funds, to cover the value of any shortfalls incurred by the Society.

Summary Box - Key Product Information for our Savings Account(s)
Account name	Mutually Exclusive Scheme
Interest rates (AERs)	2.50% gross pa/AER variable
Tax status	Interest is paid net unless you are eligible for gross interest in which case an HM Revenue & Customs form R85 is required.
Conditions for bonus payments	There are no bonus payments features on this account.
Withdrawal arrangments	Withdrawals are not permitted on this account from the date it is opened until the Fixed Charge Security is discharged.
Access	Not applicable

Ready to apply?

We have a team of qualified mortgage advisers who can help you either face-to-face or over the telephone if you prefer. They are specially trained to offer you advice and provide you with all the information you need to choose a mortgage that is suitable for your personal circumstances.

We can call you about this scheme

This product is available for residential purchases only. It is not available for commercial, buy-to-let, remortgages or additional borrowing.

If you are a new customer please bring some form of identification and verification of address as detailed in the Proving Your Identity leaflet. For further assistance, call your local branch, our Principal Office or visit our website.

Mutually Exclusive Scheme

As the investor, please ensure that you read:

• this page in full including the further terms and conditions below
• the separate Investment Account Terms & Conditions
• the information sheet for investors (available on application)
• the investor acknowledgement form (available on application)

As the borrower, please ensure that you read:

• the Mortgage Guide
• the Mortgage Rates and Features Guide

These contain important information about our accounts, therefore it is important that you and your immediate family member read and understand how this scheme works.

Further terms and conditions for the Mutually Exclusive Scheme

Mutually Exclusive Scheme

1. In certain circumstances we reserve the right not to offer this scheme or offer it up to the full 95% for certain types of property.
2. The investor and borrower must be immediate family relatives (ie being brothers, sisters, step brothers/sisters, parents, grandparents, legal guardians).
3. Mortgages are subject to normal affordability and income criteria based on the LTV required (ie up to 95%). We will only lend up to the maximum LTV if affordability criteria are met at this level. All mortgages are subject to status and valuation.
4. Please note, if the valuation changes before completion, the value of charge required may change in order for us to lend the LTV requested.
5. In the event that portability is exercised on a mortgage, the charge will remain in place, unless the LTV has decreased to 75% or below. Any further increase in LTV required outside of normal criteria will be re-assessed.
6. The Society reserves the right to take funds under charge as and when a mortgage account goes into arrears, in order to clear the arrears. In practice, this may not always be exercised and is at the Society’s discretion.
7. Funds under charge will be taken to cover any shortfall incurred by the Society from the sale of a repossessed property.
8. The investor will be notified of the Society’s intention to take funds under charge. A minimum seven days notice will be given for this.
9. The Mutually Exclusive Scheme may be withdrawn or changed at any time.

Mutually Exclusive Savings Account

1. Interest will be capitalised on 16 May and transferred to a suitable Skipton Building Society account, or bank account.
2. ^No withdrawals, further investments or transfers are permitted other than if the fixed charge security is being increased (eg for porting/additional borrowing), or the charge is being released.
3. No change to the account holders is allowed whilst the charge is in place.
4. As and when the charge is released, the account will revert to Branch Access (without bonus).
5. The account must be opened at least 14 days before completion of the mortgage (we would recommend 14 days prior to exchange of contracts) as the cooling off period must have expired when the charge takes effect.
6. The minimum balance is £500 and the maximum investment £100,000.
7. Interest will accrue on a daily basis and will be paid out to your bank account (by BACS transfer which can take three working days) or other suitable Skipton Building Society account at midnight on 16 May each year.
8. The variable rate Mutually Exclusive Savings Account is a share account which confers membership rights, and is subject to the Rules of the Society. Copies of the Rules can be obtained from any branch or from our Principal Office.

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year. Gross means the interest paid before the deduction of Income Tax at 20%.