Skipton Building Society has recently unveiled its new 100% mortgage in the UK. It’s designed to allow first-time buyers easier access to the property ladder, with house prices nowadays reaching unaffordable levels for many new buyers.
In this blog, we’ll explain a bit more about the 100 percent mortgage, what it means for first-time buyers, and how it can help people get their foot on the property ladder.
What is a mortgage?
A mortgage is essentially a loan agreement between you and a lender to buy a home. and the house may be repossessed if the buyer fails to keep up the mortgage payments.
Before you’re able to get a mortgage, you’ll first have to pass affordability checks and find a mortgage lender who will accept you and let you know how much you can borrow.
What is the 100% Mortgage?
There have been 100 percent mortgages before in the UK which were classed as higher risk for the lenders and overall banking system. However, the new 100% mortgage from the Skipton Building Society called Track record mortgage) has re-introduced the product.
It allows the buyer to borrow up to the full value of their desired property, depending on their income. The aim is to allow first-time buyers to use their current rent payments as proof of their ability to repay a mortgage, and therefore give them the opportunity to get on the property ladder without having to have a huge sum of money in their savings account to be used as a deposit.
There are a few requirements that Skipton has set out, as the 100 percent mortgage isn’t available to everyone.
To qualify, you must:
– Be a first-time buyer
– Be aged 21 or over
– Have less than a 5% deposit
– Have no missed payments on debts / credit commitments (e.g. mobile phone bill or loans)
over the last 6 months
– Want to borrow up to £600,000
– Not be looking to buy a new build flat
– Have proof of having paid at least 12 months rent in a row, during the last 18 months
– Have experience paying all household bills (e.g utility bills, council tax etc.) for at
least 12 months in a row, during the last 18 months.
If you meet these along with a few other requirements, you might be able to get yourself one of these mortgage deals.
100% Mortgage UK – Mortgage Saving Experts
If you’re a first-time buyer looking to secure your first mortgage, why not speak to one of our experienced mortgage brokers who can find you some of the best mortgage rates around.
We’ll match you with an appropriate mortgage product and aim to get you approved as soon as possible, so contact us today to find out more!
