Skipton still offering 100% mortgage priced at 5.89%

by Aaron Strutt

Jun 23 2023

Skipton Building Society is still offering its 100% mortgage aimed at first-time buyers currently renting.

The 'Track Record Mortgage' maximum loan size is £600,000 and borrowers will need a clear credit history to qualify. The no-deposit mortgage is available to borrowers who can demonstrate a track record of affordability of all monthly rent and household expenditures for a minimum of 12 months in the last 18-month period.

The monthly mortgage payment must equal or lower than the average of the last six months rental cost. For example, if the average rent over the last six months is £800, the mortgage payment must be £800 or lower.

Skipton's maximum mortgage term is 35 years, and the top income multiple is 4.49x salary on this no-deposit product. 

Who is eligible for the new 100% mortgage?

Borrowers may be eligible for this product if:

• Each applicant must be a first-time buyer aged 21 or over. 
• Applicants cannot have any missed payments on debts or credit commitments like mobile phones within the last six months.
• They are not looking to buy a new build flat.
• Borrowers will need proof of having paid rent for at least 12 months in a row within the last 18 months.
• They have 12 months of experience paying all household bills within the previous 18 months.

Aaron Strutt, product director at Trinity Financial, says: "Skipton recently increased its 100% mortgage rate by 0.4% but it still seems pretty good value for money compared with the price of standard fixed and tracker rate deals.

"This mortgage got a huge amount of publicity when it launched but it has not been as popular with our clients as we expected. Many of our first-time buyer clients have some form of deposit to put down or they have been gifted some cash from their parents. No other lenders have come into the market to match Skipton's product yet."

How much does Skipton's 100% mortgage cost?

Skipton's 100% mortgage rate is 5.89%, and it is fixed until 30 September 2028. The mortgage does not have an arrangement fee, and after the fixed rate period, the mortgage reverts to the lender's 6.54% standard variable rate. Early repayment charges apply during the fixed rate period. 

Representative example: A capital and interest mortgage of £300,000 payable over 30 years, initially on a fixed rate basis until 30 September 2028 at 5.89% and then on a standard variable rate currently 6.54% for the remaining 25 years, 5.89% would require 62 monthly repayments of £1,777.49 followed by 298 payments of £1,888.86. The total amount repayable would be £673,199.66 made up of the loan amount, plus interest (£373,115.72) and £0 (product fee), £95 (final repayment charge), £20 (completion fee). The overall cost for comparison is 6.5% APRC representative.  

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage