Deposit-free mortgage for renters? It’s a dream come true!

Couple with dog in new home

Every now and then, we receive details of a new mortgage product that really gets us excited, take the new deposit-free mortgage for renters. 

The new Track Record Mortgage from Skipton Building Society is one of those products. 

This is a perfect solution for the growing number of people, trapped in the vicious rental circle of doom, where rental prices have been increasing (and often outstripping mortgage repayments), making it almost impossible to save for a deposit.  

With this newly released mortgage product, renters could take their first steps onto the property ladder with no deposit needed.  

We’ll say that again. 

No. Deposit. Needed.  

The Skipton believe those renters who have a proven track record of managing their budgets and living expenses should have the opportunity to own their own homes. The new Track Record Mortgage is specifically designed for renters who have a history of 12 months’ consecutive payments, along with a good credit score. You won’t even need to ask someone to act as a guarantor! 

Key product details 

Before you get too carried away on Rightmove, here are the key details you need to know.  

The maximum term is 35 years 

The maximum LTV is 100% – meaning no deposit is required 

Interest rate is fixed for 5 years 

The maximum loan is £600,000 

This offer is not available on new build flats 

The offer is capped at a maximum 4.49 x LTI 

Applicants must be 21 or over, and a first-time-buyer

Only available to current renters moving household-to-household. Applicants must have proof of having paid at least 12 months’ consecutive rent within the last 18 months, along with at least 12 months experience paying all household bills (e.g., utility bills, council tax etc) 

We love to see positive changes in the mortgage market 

For years, we’ve seen how renters have been priced out of home ownership because rental prices make it almost impossible to save for a deposit.  

Some people might be unsure of the growing return of 100% mortgages; after all, 2008 wasn’t that long ago.  

But in this instance, we see it as a good thing.  

It’s creating opportunities for a generation of potential homeowners with a proven track record of affordability.  

For the first time in a while, there is hope an entire generation can break free of the rental trap.   

Of course, it should be noted the interest rates are higher than the average 5-year fix. Our mortgage advisers will look through your finances and find out what is the best option for you. We’ll compare figures and see if this is the best way to help you take those first steps on the property ladder. In some scenarios, you may be better off financially benefiting from a tracker mortgage or saving for a small deposit and taking out a shorter fix with a lower interest rate.  

But that’s for us to worry about.   

We’ll always take a long-term view as to how we can save you money over the entire duration of your mortgage term.  

If you’re ready to get started, then pick up the phone and give us a call on 01582 450000 

We can’t wait to help you own your first home! 







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