Can I get a 100% Skipton Mortgage?

When it comes to buying a home, getting a mortgage can sometimes feel like an overwhelming process, especially if you're struggling to save for a deposit. For many first-time buyers, the dream of homeownership seems out of reach without a substantial deposit. Bell Financial are here to help you understand the first-time buying process, and there are options out there that could make that dream a reality. 

One option is a 100% mortgage, which means you can borrow the full value of the property without needing to put down a deposit. But can you get a 100% Skipton mortgage? Let’s explore this option and whether it might be right for you.

What is a 100% Mortgage?

Skipton Building Society is one of the UK's largest building societies and offers a wide range of mortgages. Skipton has helped many first-time buyers achieve their homeownership goals. However, the availability of 100% mortgages depends on various factors, including market conditions and lender policies.

A 100% mortgage involves the lender providing the full amount to cover the cost of the property, meaning you don’t need to put down a deposit. In theory, this makes homeownership more accessible to buyers who might not have been able to save up a large sum for a deposit.

However, these types of mortgages are relatively rare. Traditionally, mortgage lenders require a deposit to reduce the risk they face if the borrower defaults. The larger the deposit, the less risk the lender takes on, which is why most lenders ask for at least 5-10% of the property value as a down payment. But 100% mortgages offer a way around this requirement.

Skipton Building Society has introduced a groundbreaking mortgage product designed specifically for renters who aspire to become homeowners but struggle to save for a deposit. This innovative offering, known as the Track Record Mortgage, is a 100% Loan-to-Value (LTV) mortgage, meaning renters can purchase a property without putting down a deposit.

This initiative is particularly beneficial in the housing market we are experiencing, where rising property prices and the cost of living have made it difficult for first-time buyers to gather the funds for a deposit. By offering this mortgage, Skipton can provide a realistic and accessible pathway to homeownership for responsible renters who can afford mortgage repayments but have been held back by deposit requirements.

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Who Is Eligible for Skipton’s 100% Mortgage?

The Track Record 100% Mortgage is specifically designed for renters ready to become homeowners but haven’t been able to save for a deposit. This mortgage is available exclusively to buyers who meet specific eligibility criteria.

To qualify, applicants must:

• Be renting a property.
  
  
• Be aged 21 or over.
  
  
• Provide proof of 12 months of rental payments, demonstrating financial responsibility.
  
  
• Have a clean rental payment history, meaning no missed or defaulted rent payments.
  

This mortgage is designed to support responsible renters who can afford monthly mortgage repayments but have struggled to save a deposit due to high rental costs. Unlike 100% mortgages that often require a guarantor or family support, Skipton’s Track Record Mortgage allows renters to buy a home solely based on their ability to manage regular payments. For more information on the criteria, visit the criteria page on the Skipton Building Society website.

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How Does Affordability Work for Skipton’s 100% Mortgage?

When applying for a mortgage, the amount you can borrow is usually determined by your income, outgoings, and a lender’s affordability assessment— capped at around four to four-and-a-half times your salary. 

However, with Skipton’s Track Record Mortgage, your borrowing limit is directly tied to your current rent payments. This means your monthly mortgage repayment cannot exceed what you currently pay in rent. For example, if you’re paying £1,000 per month in rent, your mortgage repayments under this scheme would also be capped at £1,000 per month. 

It is important to note that even if you pay £1,000 a month on rent, there’s no guarantee that you’ll be able to borrow the equivalent amount on this mortgage, as you'll still need to pass Skipton's affordability tests. According to Zoopla, the average UK house price in January 2025 was £267,200, and you'd need to pay more than £1000 a month in rent to borrow this much. Wondering "What mortgage can I afford?" Our latest blog breaks down how to calculate what you can realistically borrow.

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Benefits of a 100% Mortgage

Skipton’s 100% Mortgage offers an opportunity for renters struggling to save for a deposit. Here are some of the advantages:

No deposit required: You don’t need to save for a deposit, making homeownership more accessible for first-time buyers who can afford monthly repayments but struggle to save while paying rent.

Breaks the ‘rent trap’: Many renters find it hard to save for a deposit while covering high monthly rental costs. This mortgage allows them to become homeowners without needing a large deposit. 

No need for a guarantor or family help: Unlike other low-deposit mortgages, this doesn’t require a guarantor, family gift, or joint application with a parent or friend. This makes it an independent option for renters ready to buy.

Long-term savings: Renting can often be more expensive than mortgage repayments over time. With a fixed-rate deal, homeowners could pay less per month than renting. 

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Drawbacks of Skipton 100% Mortgage

While Skipton’s Track Record Mortgage offers an option to those struggling to save for a deposit, there are some potential downsides to consider:

Higher Interest Rates: Lenders take a risk with 100% mortgages, so interest rates tend to be higher than those on mortgages with a deposit. 

Risk of Negative Equity: With no deposit, borrowers start with zero equity in their home. If house prices fall, the mortgage could become more expensive than the home’s value.  Selling or remortgaging in this situation can be difficult.

Limited Property Options: Some lenders restrict the type of property eligible for 100% mortgages. New-builds and flats, for example, might be excluded due to their higher risk of value fluctuations.

Strict Eligibility Criteria: Not everyone can qualify for this mortgage. Borrowers need to provide proof of at least 12 months’ rental payments without defaults and must be first-time buyers. 

Skipton’s 100% Track Record Mortgage could be the key to unlocking homeownership for renters struggling to save a deposit. If you’ve been reliably paying rent and want to turn those payments into an investment in your home, this mortgage might be the perfect solution.

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Take the First Step Towards Owning Your Home

Tired of paying rent with nothing to show for it? Skipton’s Track Record Mortgage could be your chance to step onto the property ladder—without the need for a deposit. If you’ve been consistently paying rent, why not turn those payments into mortgage repayments instead?

To find out if you qualify and find the best mortgage deal for your situation, speak with the experts at Bell Financial Solutions for professional advice. You can also learn more directly from Skipton’s Track Record Mortgage page. Don’t let deposit worries hold you back—start your journey to homeownership today!

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