100% Mortgages now available for First Time Buyers (subject to criteria)
Following the announcement that Skipton Building Society has unveiled its ground-breaking 100% mortgage scheme designed to assist first-time buyers in purchasing their homes without the need for a deposit, we have joined forces with Mortgage Medics to share more.
Recognising the growing challenge of saving for a deposit while meeting rental and bill payments, Skipton Building Society aims to address this issue by offering a mortgage product that allows applicants to prove their ability to effectively manage their household budget as sufficient security to secure a mortgage without a deposit.
Unlike other schemes, the ‘Track Record’ mortgage requires no additional collateral or guarantor. To coincide with its launch, Skipton is introducing a 5-year fixed rate at 5.49%.
The mortgage is available for loans up to £600,000, subject to certain conditions. The mortgage payment cannot exceed the proven rental payment made consistently for the last 12 months. Additionally, the mortgage amount cannot exceed 4.49 times the combined total of all applicants’ annual income.
To be eligible for the ‘Track Record’ mortgage, applicants must meet the following criteria:
- Each applicant must be a first-time buyer.
- Each applicant must be at least 21 years old.
- Applicants must provide evidence of consistent rent and bill payments for a continuous period of 12 months within the last 18 months.
- Applicants must possess a clean credit history, with no missed or late payments in the last 6 months.
- The names on the mortgage application must match the individuals responsible for paying the rent and bills.
- Interested individuals are encouraged to seek advice from mortgage advisers for further information and to determine their eligibility. Skipton Building Society remains committed to assisting prospective homebuyers and is readily available to help explore suitable options.
Mishon Mackay, along with our partners at Mortgage Medics, praise this innovative mortgage offering and recognise its potential to aid those who demonstrate their ability to manage household finances but lack surplus income for a deposit, particularly without assistance from family members.
Sam Murphy, Managing Director at Mortgage Medics, said:
“This new product won’t be for everyone but it’s great to see innovation from lenders aimed at helping more first time buyers out of rented and on to the property ladder. This new product from the Skipton could be particularly attractive to those paying high rents or couples who are renting separately but looking to buy together.”
As with any financial decision, it is crucial to seek independent advice and consider personal circumstances to ensure the most suitable solution is pursued.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Mortgage Medics Limited is an appointed representative of In Partnership, the trading name of The On-Line Partnership Limited, which is authorised and regulated by the Financial Conduct Authority (www.fca.org.uk).
Mortgage Medics Limited
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Registered Office: 353 Portland Road, Hove, BN3 5SF