New deposit-free mortgage announced by UK Building Society

A UK building society has released a new mortgage product specifically aimed at first time buyers who are currently renting.

Skipton Building Society has announced a 100 per cent mortgage, which calculates both the monthly payment and total amount borrowed on what the applicant could previously afford to pay in rent.

The news comes as UK rental prices hit the highest rates on record. Skipton hope that the lack of deposit, and the mortgage payments based on previous rental payments will help remove some of the obstacles renters face when trying to purchase their first home.


  • The mortgage is five years fixed rate at 5.49 per cent.
  • Buyers can borrow up to 4.49 times their income (up to £600,000).
  • Maximum term 35 years.
  • Does not require a guarantor.
  • The monthly payment will not exceed the average rent payment over a 6 month period.


  • Buyers must be over the age of 21
  • Must be a first time buyer.
  • Must be able to provide evidence of require 12 months of on-time rental payments.
  • Must have a clean credit history with no missed payments in the past 12 months.
  • The mortgage can only be used on a house and not a flat or apartment.
  • Applicants can only borrow equivalent too or less than their monthly rental payments, and must still pass Skipton’s affordability tests.

 Jason Blunden, Managing Director at Evolve Financial Solutions, said: “This is a great piece of innovation by Skipton, addressing the need of those clients that can afford to rent but not buy.”

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