Exciting news for renters who want to get on the property ladder – Skipton Building Society has launched a 100% Loan-To-Value (LTV) mortgage for first-time buyers, meaning that even if you don’t have a deposit saved up, you can still buy your own home.
So how does it work? The monthly mortgage payment must be equal to or lower than the average of the last 6 months’ rent costs. For example, if your average rent over the last 6 months is £800 per month, the monthly mortgage payment must not exceed £800. To be eligible, people will need to evidence rent and household bill payments for at least 12 months within the last 18 months.
To qualify for this mortgage, applicants must be aged 21 or over, be able to demonstrate that all monthly rent and household bills have been paid on time for a minimum of 12 months in the last 18-month period, and have no missed payments on any debts/credit commitments in the last 6 months. The current product offers a 5-year fixed rate at 5.49% with no fees, and the maximum term is 35 years.
It’s important to note that while Skipton are happy to consider a deposit even if it is gifted, this product is designed for >95% lending, so if you have a deposit of 5% or more, you won’t be eligible. Additionally, this mortgage is only available on new build homes and not apartments. However, with borrowing up to £600,000 and incentives of up to 2% allowed, there’s still plenty of room for choice when it comes to finding your dream home.
If you’re a first-time buyer currently renting, this 100% LTV mortgage from Skipton could be the perfect way to get onto the property ladder. With a little bit of planning and preparation, you could be on your way to owning your own home in no time.
Stephen Holbrook, Sales Director at Abbey New Homes, said:
“We understand the importance of being able to get on the property ladder for the first time. Skipton’s new mortgage product provides an opportunity for those who have been renting to own their own home without needing a large deposit. This product will open up doors for many first-time buyers and help to make the dream of homeownership a reality.”