News and Events

The return of the 100% mortgage

It’s the news a number of people have been waiting for… the return of 100% mortgages!

Tenants of rental properties have often argued that the amount they pay in rent should be considered in calculating the affordability of a mortgage. Finally, Skipton Building Society seem to have accepted this and are now offering a 100% mortgage called the ‘Track Record’ mortgage which is at a fixed rate of interest for 5 years.

This is different from the previous 100% to 110% mortgages that we experienced prior to the recession in 2008, and there are some eligibility criteria which need to be satisfied these include:

*  Each applicant is a first-time buyer aged over 21.

*  You have less than 5% deposit.

*  You have not missed any payments on debts/credit commitments (such as phone and credit card bills) over the last 6 months.

*  You want to borrow up to £600,000.

*  You are not looking to buy a new flat.

*  You have proof of having paid at least 12 months’ rent in a row during the last 18 months.

*  You have experience of paying all household bills for at least 12 months in a row during the last 18 months.

*  You must satisfy the household to household criteria; this means that the same people who are renting now (and have been for the last 12       months) are the same people applying for the mortgage. If applying alone, the rental and household expenditure must have been covered   entirely by you for 12 consecutive months. Joint applications can be made by up to 4 applicants, who may have been renting separate   properties but can satisfy the rental and household expenditure requirements.

*  You do have to satisfy the affordability calculator but if, for example, you have been paying rent of £1,200 per month you may be able to borrow up to £223,730 over a term of 35 years. Further information can be found on Skipton’s website, but hopefully more lenders will produce similar products to help all those in rental to become homeowners!

Should you require any advice on selling a property then please do not hesitate to contact  Gemma Blizard