Skipton Building Society has recently launched a new mortgage product designed specifically for renters. The 100% LTV (Loan to Value) ‘Track Record Mortgage’ aims to make it easier for those who are currently renting to step onto the property ladder.
What is a 100% LTV mortgage?
A 100% LTV mortgage means that the borrower is able to borrow the full amount of the property's value. In other words, they don't need to save up a deposit before purchasing a property.
How does Skipton Building Society's 100% LTV mortgage work?
Skipton Building Society's 100% LTV mortgage is available for first-time buyers who are currently renting. The mortgage allows borrowers to borrow up to 100% of the property's value, which means they don't need to save up a deposit.
To be eligible for the mortgage, borrowers need to have a good credit score and be able to evidence a minimum of a 12 months good track record rental history.
Skipton is also ensuring the monthly mortgage payment for each applicant is not more than the average of their last six months rental costs that they have paid. For example, a tenant paying an average of £1,000 per month over the last six months will have a maximum monthly mortgage payment of £1,000.
The mortgage comes with a fixed interest rate of 5.49% for five years and a maximum term of 35 years.
Why is Skipton Building Society offering this mortgage?
Skipton Building Society's 100% LTV mortgage is aimed at renters who are finding it difficult to save up a deposit to purchase a property. By offering a mortgage with no deposit required, Skipton Building Society hopes to make it easier for renters to get onto the property ladder.
The mortgage is also designed to help those who have been impacted by the COVID-19 pandemic. With many people facing financial difficulties due to the pandemic, Skipton Building Society's 100% LTV mortgage may provide a lifeline for those who are struggling to save up a deposit.
How does the mortgage compare to other mortgages on the market?
Skipton Building Society's 100% LTV mortgage is the only mortgage on the market aimed at those with no deposit. However, there are lenders that offer products for deposits as low as 5%.
The mortgage also comes with some flexibility, such as the ability to make overpayments and take payment holidays, which may be attractive to some borrowers.
Overall, Skipton Building Society's 100% LTV mortgage may be a good option for renters who are struggling to save up a deposit. However, it is important to carefully consider the terms and conditions of the mortgage before making a decision.
How to get a 100% mortgage?
If you're interested in finding out more about Skipton Building Society's 100% LTV mortgage, speak to one of our mortgage team by completing one of our online forms or calling 0330 088 1107
All information correct as of 09/05/2023