Skipton Building Society have today announced a 100% mortgage for first-time buyers – and unlike the handful of other no-deposit mortgages currently available in the UK, it doesn’t need a guarantor. Instead, Skipton are looking for 12 months of on-time rental payments, as well as a good credit history.
Skipton hope that the 100% mortgage will help people trapped in the “mortgage cycle” who are unable to save up for a mortgage.
Who is eligible?
The key eligibility criteria shared by Skipton are:
- Applicants must be first-time buyers
- Applicants must be aged 21 or over
- Applicants must prove they’ve paid rent on time for 12 months in a row within the last 18 months
- If there are multiple people buying, they must have been renting together for those 12 months
- Applicants must have no missed payments on debts or credit commitments in the last 6 months
- The monthly mortgage payments must be equal to or lower than the average of the last 6 months rental cost
- The property cannot be a new build flat
- Applicants are looking to borrow no more than £600,000
- The Loan To Income must be no more than 4.49x
- If they do have a deposit, it must be less than 5% of the purchase price
Applicants will also be subject to credit and affordability checks.
Your home may be repossessed if you do not keep up repayments on your mortgage.
