The 100% Mortgage Returns

News at Church Robinson | 17/05/2023

No deposit deal for renters is here


Getting on to the property ladder is a task that many renters find incredibly difficult. One of the biggest challenges being saving enough money for a deposit. Skipton Building Society is hoping to ease that difficulty by launching a 100% mortgage, the first no-deposit deal to launch in the UK since 2008. 

Charlotte Harrison, CEO of Home Financing at Skipton has stated that the five year fixed deal has been created to acknowledge those that have met rental commitments, explaining;  

"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.” 


Who is eligible


This is a 5-year fixed rate product at 5.49% over a maximum term of 35 years. Skipton Building Society states that you might be eligible for this mortgage if:

  • Each applicant is a first-time buyer
  • Each applicant is aged 21 or over
  • You have less than a 5% deposit
  • Each applicant has no missed payments on debts / credit commitments (e.g. mobile phone bill) over the last 6 months
  • You want to borrow up to £600,000
  • You meet the household-to-household criteria
  • You're not looking to buy a new build flat
  • You have proof of having paid at least 12 months' rent in a row, during the last 18 months
  • You must also have experience of paying all household bills (e.g utility bills, council tax etc) for at least 12 months in a row, during the last 18 months.


Reaction to the news


Many experts reacting to the news have acknowledged that there are a number of terms and conditions surrounding eligibility that might lead to excited renters not being able to take advantage of the deal. However, many experts feel that those that are eligible will benefit from the deal. 

Andrew Montlake, Managing Director of Coreco Partners LLP, said “Whilst I have had some concerns in the past, the time now seems right for a new type of 100% mortgage, one that is underwritten prudently and where affordability is carefully taken into account.”

Rhys Schofield, Managing Director at Peak Mortgages and Protection reacted to the news by stating “finally, a lender is addressing the catch-22 faced by many renters paying everything to their landlord with no prospect of saving for a deposit.”

Financial journalist and broadcaster Martin Lewis has also said "Skipton Building Society's criteria of requiring a good rental track record to prove someone can make mortgage payments is sensible, and so I cautiously welcome it, done carefully, after advice, as an option for some."


The importance of seeking advice


Martin Lewis has highlighted the importance of ultimately seeking advice. If you are thinking of moving from renting to buying, considering all your available options and finding a solution that meets your specific needs is vital. Buying a home is an emotional investment as well as a financial one and the Church Robinson team fully appreciates that the property journey can have its ups and downs. 

When buying a property through Church Robinson Estate Agents you’ll get a dedicated sales progressor who will be with you every step of the way. 


About Church Robinson


As leading local estate agents in Didcot and with sister offices in Newbury, Lambourn, Marlborough and Devizes, and the surrounding areas, we are best placed to help you sell or let your property and of course to help you find your next home, whether you're buying or renting.

By offering a personalised service we can tailor the sale and timeline to your requirements as we don’t believe the ‘one size fits all’ approach works in this Industry.

The way we work is very transparent with a clear sales process, so you know what to expect. This is especially useful if this is your first time selling a house.

Contact us today to find out how we can help you sell your home, and for advice and guidance on the local area.