No deposit mortgages now available

Switching from renting to owning your own home has been a challenge for first time buyers for many years. With the cost of living crisis bringing increased household bills, tenants are increasingly unlikely to be able to save enough deposit to satisfy prospective mortgage lenders.

There has always been the argument that paying rent consistently for a number of years carries no weight with lenders. This good credit history is overlooked when considering whether buyers can afford their mortgage repayments, even when their existing rental charge was higher.

Lenders have been nervous about reintroducing 100% mortgages following the 2008 financial crisis. They have previously stuck with 95% mortgage products, which as house prices have risen, have not offered the opportunity for renters to become homeowners.

Skipton Building Society yesterday launched their ‘Track Record Mortgage’ in a bid to redress the balance for first time buyers. This mortgage offers a 100% loan to value mortgage avoiding the requirement of a deposit and the dependency on a family member or friend to act as guarantor.

This new mortgage product, believed to be the first of its kind, is available for tenants who can evidence 12 months of continuous rental payments and monthly household bills alongside the usual affordability criteria required for a mortgage application.

Charlotte Harrison, chief executive of home financing at Skipton, said: "We recognise there’s a clear gap in the market for people who have a strong history of making rental payments over a period of time so can evidence affordability of a mortgage – but there is currently no solution for them to buy a property due to lack of savings or access to family wealth. It is time for a re-think on these massive barriers to home ownership, and we’re proud to take the lead on bringing to the market, solutions for such a massive social problem.”

Skipton’s offer is a fixed 5 year deal with a 5.94% interest rate and is available to first time buyers only who are over 21 years of age. As part of the affordability criteria, Skipton will ensure monthly repayments are the average of tenant's last six months rental costs.

Key eligibility criteria

  • Each applicant must be a First Time Buyer
  • Each applicant must be aged 21 or over
  • The same people who are renting now (and have been for the last 12 months) must be the same people on the mortgage (Exceptions may apply)
  • Must have proof of having paid rent for at least 12 months in a row, within the last 18 months
  • Must also have 12 months experience paying all household bills within the last 18 months
  • Each applicant will have no missed payments on debts / credit commitments in the last 6 months
  • The monthly mortgage payment must be equal to or lower than the average of the last 6 months rental cost
  • The deposit must be less than 5%
  • Maximum loan size £600,000
  • Not available on New Build flats

For those who are struggling to save a deposit this new mortgage product offers tenants a lifetime to get on the property ladder and out of the ‘rental trap’ that many have found themselves in.

Our mortgage team at Poole Townsend have over 50 years experience of working in the industry and can access this deal and many others across a wide range of mortgage lenders both on the high street and online. Make an appointment to discuss your personal circumstances and we can determine whether this is the perfect opportunity for you to get on the property ladder.

You’re in safe hands

Trust our team of local experts to provide the best advice on a wide range of legal and financial issues whenever you’re facing a life change and need the best support.

0800 389 2939

Our team are available Monday to Friday 9am - 5pm

Find Your BranchMEET THE TEAM

She'll be glad you planned ahead

Organising your finances today, while planning for the future can be a challenge. We’ll put the kettle on – and take the pressure off.


You'll know when it's time to talk

From making a will, to matters of business law our qualified solicitors can offer advice and guidance. Pop in for a chat or call us to make your free appointment.


Sign up for our newsletter

Your details

Signing up to our newsletter will place you on our weekly property guide, providing you with the latest properties for sale and industry news.
You can unsubscribe at any time. We value your privacy and will not share your details.

© Poole Townsend 2017 - 2024. All rights reserved.
Poole Townsend solicitors Ltd (Company no:10964550) is a company registered in England and Wales with its registered office at 69-75 Duke Street, Barrow in Furness, LA14 1RP. A list of directors is available at the registered office address. Authorised and regulated by the Solicitors Regulation Authority number 647087. We are independent financial advisers authorised and regulated by the Financial Conduct Authority. VAT registration number :154365563.

Poole Townsend Solicitors Ltd are authorised and regulated by the Financial Conduct Authority.
Poole Townsend Solicitors Ltd is entered on the Financial Services Register. under reference 807084.

Poole Townsend Estates Ltd. (Company number 10960705) is a company registered in England and Wales with its registereed office at 69-75 Duke Street, Barrow in Furness LA14 1RP. A list of directors is available at the registered office address. Authorised and regulated by the Solicitors Regulation Authority number 8004592. VAT Registration number 288092466. Our Estate Agency is a member of The Property Ombudsman Scheme.

Poole Townsend Estates Ltd Property Client account has client money protection, to view our Client Money Protection Certificate please click here. To view our Equality and Diversity Data please click here. The Propertymark Conduct and Membership Rules can be found here.

Professional Indemnity Insurance – please contact Martin Oates at the address above if you require details of cover held.

Registered with the Information Commissioners Office for data protection purposes (ICO No: ZA494153 & ZA331395)


Book Your Free Valuation

Fill out the form below and we'll get in touch to arrange your free valuation.

Your Details

We value your privacy and will not share your details.