New 100 Per Cent Mortgage For First-Time Buyers


New 100 Per Cent Mortgage For First-Time Buyers

Skipton Building Society is set to offer a 100 per cent mortgage to first-time buyers in an attempt to help tenants across the country break out of rental cycles and get onto the property ladder.

Skipton’s Track Record Mortgage will enable renters who can show affordability and have a strong track record of rental payments to borrow up to 100% of a property value under the lender’s new 5-year fixed-rate mortgage product.

Standard home loans, where the borrower does not have to put down a deposit, used to be commonplace but were pulled by lenders in the wake of the 2008 financial crisis as they considered them too risky.

The move comes as more people than ever are trapped in a rental cycle as high property prices and the cost-of-living crisis make it more difficult for people to save for a deposit to buy their own home. According to Skipton’s research, there are 4.6 million households renting privately across England, more than double the number recorded in 2000. At the same time, house prices for first-time buyers have risen by an average of 18 per cent in the last two years, an increase of £39,680.

Skipton hopes that its Track Record Mortgage will enable more people to get on the property ladder without a house deposit by taking away the dependency on the ‘Bank of Mum and Dad’ or guarantors.

Charlotte Harrison, CEO of Home Financing at Skipton, said: “We need to tackle the UK’s housing affordability crisis to enable more people, especially renters who are trapped in renting cycles, to buy their first home.

“People trapped in renting is one of the UK’s biggest housing challenges, having a massive impact on the fabric of our society. With escalating rents and the cost-of-living squeeze further impacting people’s ability to save for a house deposit – it’s making it almost impossible for people to get onto the property ladder.

“We recognise there’s a clear gap in the market for people who have a strong history of making rental payments over a period of time so can evidence affordability of a mortgage – but there is currently no solution for them to buy a property due to lack of savings or access to family wealth.

“It is time for a re-think on these massive barriers to home ownership, and we’re proud to take the lead on bringing to the market solutions for such a massive social problem,” said Harrison.

The key details of Skipton’s Track Record Mortgage product include:

  • 5-year fixed rate product at 5.49% over a max term of 35 years.
  • Tenants can borrow over 95% up to 100% loan to value.
  • Available to tenants aged 21 and above.
  • Available for first-time-buyer purchases only.
  • Monthly mortgage payments for applicants cannot be more than the average of their last six months’ rental costs. For example, a tenant paying an average of £800 per month over the last six months will have a maximum monthly mortgage payment of £800.

The Track Record Mortgage has been welcomed by brokers. “The scheme is perfect for first-time buyers who can demonstrate a record of paying rent successfully and have a clear credit profile.

“Affordability will still have to be assessed, but this will provide a much-needed boost for the property market,” said Bob Singh, Founder at broker Chess Mortgages.

For more information about Skipton’s Track Record Mortgage and to see the full eligibility criteria, please click here.

Conveyancing Solicitors Alton and Hampshire

If you are a first-time buyer and want more information on mortgages or any other aspect of the conveyancing process, please get in touch with Bookers & Bolton. Our team of specialist conveyancing solicitors provide outstanding property advice on all stages of a house sale or purchase.

To speak to one of the team, call 01420 82881 or email

For more information about our services, accreditations and the team members involved, please visit our Residential Conveyancing Page.