How the 100% Mortgage Works
Skipton Building Society has introduced an innovative 100% financing mortgage for tenants who are struggling to save for a deposit. This is the first no-deposit mortgage scheme in the UK since 2008 that doesn't require a guarantor.
The Skipton 100% mortgage is designed exclusively for first-time buyers who have been paying rent regularly for at least one year. It's a five-year fixed-rate mortgage, and the significant difference is that this product doesn't require a deposit.
Eligibility Criteria
First-Time Buyer
Must not have owned a property in the last 3 years.
- Aged 21+
Rental History
12 consecutive months of on-time rent payments.
- Proof required
Bill Payments
All household bills paid on time for last 12 months.
- Council Tax/Utilities
Commitements
No missed payments on any financial commitments.
- Last 6 months
The 120% Rent Cap Rule
There's an important condition: your mortgage payment must not exceed 120% of your current monthly rent. For example, if you're paying £1,000 per month in rent, you couldn't borrow more than an amount that would result in monthly mortgage payments exceeding £1,200.
Estimated Maximum Borrowing
Based on a 35-year term and current rates.
| Monthly Rent | Est. Max Borrowing |
|---|---|
| £800 | £175,000 |
| £1,000 | £220,000 |
| £1,200 | £265,000 |
| £1,400 | £310,000 |
| £1,600 | £355,000 |
| £1,800 | £400,000 |
Note: The maximum you can borrow is capped at £600,000.
Understanding the Risks
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.