Becoming a homeowner is a dream for many renters, but the hefty deposit requirements can often make it seem impossible. With house prices and the cost of living on the rise, saving five-figure sums for a deposit can be a daunting prospect. But now, there is a solution.
No Deposit Mortgages
Skipton Building Society has launched a new deposit-free mortgage, designed specifically for first-time buyers who are currently renting who want to buy their first property.
The innovative mortgage looks at a renter’s history of making rental payments and, if they meet the affordability criteria, they can access a mortgage without a deposit. This means that people can become homeowners without having to save up a huge deposit first.
While a handful of other no-deposit deals are available, they all need the financial backing of family or friends unlike this new mortgage product.
However, the mortgage comes with a higher interest rate of 5.49%, which is more expensive than the average five-year fix of 5%.
Skipton’s new mortgage is aimed at the “Generation Rent” market, which faces a lack of affordable homes for first-time buyers, making it increasingly difficult to save for a deposit.
- Each applicant must be a First Time Buyer
- Each applicant must be aged 21 or over
- The same people who are renting now (and have been for the last 12 months) must be the same people on the mortgage (Exceptions apply)
- Must have proof of having paid rent for at least 12 months’ in a row, within the last 18 months
- Must also have 12 months experience paying all household bills within the last 18 months
- Each applicant will have no missed payments on debts / credit commitments in the last 6 months
- The monthly mortgage payment must be equal to or lower than the average of the last 6 months rental cost
- The deposit must be less than 5%
- Maximum loan size £600,000
- Not available on New Build flats
Get in Touch
If you’re a first-time buyer currently renting and struggling to save for a deposit, this new, deposit-free mortgage could be the solution you’ve been looking for. As always, not everyone will be eligible, so it’s important to speak with an experienced mortgage broker to will be able to guide you through the options available and help determine your eligibility.
Contact Thameside Mortgages today to learn more about how they can help you secure a great deal.
You can call us on 03455 120 125, or complete the form below.
A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other loan secured on it. The Financial Conduct Authority does not regulate most forms of buy to let mortgage.
Post from Thameside Mortgages