Renters are celebrating at the news that one of the UK's leading building societies, Skipton Building Society, has launched a 100% mortgage deal.
The mortgage deal is aimed at helping first-time buyers and renters without a house deposit get on to the property ladder and can be used on properties up to the value of £600,000.
Skipton Mortgages says the deal is to help people "trapped in rental cycles" who are often prevented from being able to save for a deposit, to buy a house for the first time.
Called the "Track Record" Mortgage, it will allow people with a strong history of paying their rent on time and in full to buy their first home with little-to-no deposit.
First-time buyers aged 21 and over will be able to take out a mortgage up to 100% of the value of the property they want to buy. However, they must provide evidence of paying rent for 12 months in a row (over the last 18 months) and have a good credit rating to be eligible.
The Track Record Mortgage will be fixed for two years to guard against the risk of falling into negative equity. This interest rate is more expensive than the average five-year fixed mortgage of 5%.
Whereas 100% mortgage deals in the past required a family member as a guarantor, Skipton Building Society's new offering only needs evidence of the rental payments to show affordability for a mortgage.
The deal is to be launched in the next few days or weeks.
Are you looking to take advantage of Skipton Building Society's new deposit-free, 100% mortgage? Learn more about this exciting new mortgage offer, understand how much you can afford, and find your dream home by speaking with one of our Sales Advisors today.