Skipton launches deposit-free mortgage for first-time buyers

Skipton Building Society launches 100% loan-to-value mortgage aimed at renters.

Are you a first-time buyer looking for mortgage options? Skipton has launched a deposit-free mortgage for those who’ve been paying rent for more than a year and have a good credit history.

How can you get the deposit-free mortgage?

To be eligible for Skipton’s mortgage offer, called the “Track Record Mortgage”, you’ll have to provide proof of at least 12 consecutive rent payments within the last 18 months and have paid all your household bills in full, or shared them with the same household members if selecting the household-to-household option.

The maximum loan amount is £600,000, but borrowers will be lent only the average amount of rent payments over the previous 6 months.

You must be aged 21 or older to apply, and have no missed payments on bills or credit or debt commitments in the previous 6 months.

You won’t be eligible for the deal if you want to buy a new-build apartment, or you already own another property in or outside the UK.

What are the household-to-household criteria?

If you’ve been sharing rent and household expenses with other household members, you can still apply for this mortgage but you’ll have to do a joint application with the same group of people, and each applicant must meet the eligibility criteria.

The deal is also available for those who haven’t previously shared a household but would like to buy a home together. In this case, applicants will have to prove that they’ve individually covered their entire rental and household bills payments.

How does it work?

If you tick all the boxes of the criteria above, you can estimate the amount you may be eligible to borrow by using Skipton’s Track Record Calculator.

You can compare hundreds of mortgage deals in our full comparison guide.