The brand new, 100% no deposit mortgage from Skipton Building Society has been launched today (9th May 2023). Here we explain the key highlights of this new, unique mortgage product.
What do I need to know?
If you are currently renting with at least a 12 month track record of paying your household bills on time, then you may be able buy your first home without a deposit. This is a great option to move forward if you are stuck in the rental trap of paying high rental payments, making it impossible to save up a deposit.
Key Features of the 100% mortgage:
- 100% mortgage with no deposit required
- A mortgage term of up to 35 years
- Maximum borrowing capped at 4.49% x total annual household income
- Only available as a 5 year fixed rate mortgage
Do I qualify for the 100% mortgage?
All mortgage applications are considered on a case to case basis. If you meet all of the following requirements then you may qualify for this mortgage:
- You must have 12 months track record of renting
- You must be a first time buyer
- Your new mortgage payment must be equal or lower than 120% of your rent payments
- You must be aged 21 or over
- No missed or late payments on debts/credit cards/rent/household bills within the last 6 months
What are the disadvantages of the 100% mortgage?
If the value of your new home reduces after purchasing it, then you are at risk of being in a negative equity situation. Negative equity is when your morgage balance is higher than the value of your property. This makes selling your property difficult. You can reduce the risk of negative equity by making overpayments into your mortgage to reduce the balance as quickly as possible.
You could lose your home if you don’t keep up your mortgage repayments
How do I get advice and a mortgage approval?
Get full advice and a same day mortgage approval here. Your dedicated broker will be in touch with you soon!
Now that you have filled in this form why not find out more about us?
What we do:
- Search from a unlimited range of mortgage lenders for the best options available to you
- Offer completely unbiased mortgage advice
- Home buyer mortgages
- Remortgages
- Buy to let mortgages
- Equity release – expert advice for later life borrowing
- Life insurance
What we don’t do:
- Pay your mortgage – if you do not keep up on your mortgage repayments, your home may be repossessed.
- Charge you a fee – we are a fee free broker, providing expert advice without the fee!