29 Jun Skipton Building Society 100% Mortgages
Skipton Building Society is now offering a 100% mortgages for first-time home buyers who are currently renting.
For the first time since 2008, there is now a no-deposit deal – that doesn’t require a guarantor’s backing available to those who qualify for the following:
- Are a first-time buyer and 21 years of age or above
- Must have proof of renting for at least 12 consecutive months out of the past 18 and be up to date on all rental payments during this period.
- Must have proof of up to date household bills, such as council tax and electricity and/or gas. for at least 12 consecutive months out of the past 18.
- Other repayment commitments such as Netflix subscriptions, mobile phone repayments and so on must have been paid on time without any defaults.
- Aren’t looking to buy a new-build flat.
The 100% mortgage, allows those who qualify to borrow the amount that they pay each month in rent for example, if you pay £1,000 a month on rent, your 100% mortgage repayment could not cost you more than the equivalent of £1,000 a month.
Even if your rent is £1,000 a month, there is no guarantee that you will be able to borrow the equivalent amount on this mortgage, as Skipton’s have their own affordability tests that you will need to complete. If there are concerns about your ability to repay, there may be a reduction in the amount Skipton is willing to lend you. The maximum you can borrow is £600,000.
Depending on where you may be planning to live and the value of property, this mortgage might not help. The average first-time buyer property costs £238,000, according to the latest UK House Price Index which means that you wouldd need to be paying more than £1,300 a month in rent to borrow this much.
*Your home may be repossessed if you do not keep up repayments on your mortgage.