Skipton Building Society: Support for First-Time Buyers

Skipton Building Society recognises the challenges first-time buyers face when trying to get on the property ladder. To help address these challenges, they have introduced a new range of mortgage products aimed at making homeownership more achievable for their clients.

Key Features and Benefits for First Time Buyers

• Up to £1,500 Cashback: Receive up to £1,500 cashback on selected mortgage products.
• 40-Year Term: Flexible mortgage terms up to 40 years, helping to reduce monthly payments.
• Small Deposits: Options starting from just a 5% deposit or 0% for Skipton’s Track Record Mortgages, making it easier to get started.
• Income Booster (Joint Borrower, Sole Proprietor Scheme): Allows multiple applicants to combine their incomes for a single mortgage.
• Generous Loan to Income Multiples: Borrow up to 5.5 times your income on up to 90% LTV 
• Gifted Deposits: Allows for deposits that have been gifted from family or friends.
• Free Valuation and No Completion Fee: A free property valuation is included as part of the mortgage process and there are no completion fees.

Additional Schemes for First-Time Buyers

Small Deposit Mortgages

As a first time buyer it is often hard to save up a large deposit to purchase a house, Skipton Building Society recognise this struggle and offer flexible mortgage solutions for those with small deposits. 

As a first-time buyer, the deposit can be as little as 5% if you are a British citizen, have indefinite leave to remain, or EU citizens with either settled or pre-settled status. For other nationalities and visa types you can qualify for a mortgage with as little as a 10% deposit. 

Non-UK Nationals

Skipton Building Society’s lending criteria are particularly accommodating for non-UK nationals. Applicants from within the European Economic Area (EEA) are eligible provided they have settled or pre-settled status. For those on a visa, eligibility requires that you have lived in the UK for at least one year and have a minimum of two years remaining on your visa. However, if your visa has less than two years remaining, Skipton may still consider your application on a case-by-case basis.

Income Booster 

Skipton’s “Income Booster” scheme offers extra support to first-time buyers through a Joint Borrower, Sole Proprietor (JBSP) arrangement. This scheme allows up to four people to apply for a mortgage together, with only one person becoming the legal owner and resident of the property. Importantly, all applicants are jointly responsible for the mortgage repayments.

Benefits of Skipton’s Income Booster Scheme:

• Increased Borrowing Potential: Skipton calculates affordability based on the combined incomes of all applicants, which can result in higher borrowing limits compared to a single application.
• No Relationship Restrictions: The scheme is open to any combination of applicants, whether they are family members or friends, offering greater flexibility.
• Low Deposit Requirement: Available with deposits as low as 5%, making it easier to secure a mortgage.
   

Track Record Mortgage

Skipton also offers a “Track Record Mortgage” scheme, which allows first-time buyers to secure a mortgage with no deposit. This scheme is designed for those struggling to raise money for a deposit but have demonstrated a strong track record of meeting their rental payments.

Who Qualifies for a Track Record Mortgage?

• First-Time Buyers: Applicants must be 21 years or older and must not have owned a property within the last three years.
• Proof of Rent Payments: You must provide evidence of having paid rent and household bills on time for 12 consecutive months within the last 18 months.
• Affordable Mortgage Payments: The mortgage payments must be equal to or lower than your average rent over the previous six months. For example, if your average rent was £1,200 per month, your mortgage payments must not exceed £1,200 per month.
• No Deposit Required: Skipton allows you to apply with no deposit, although they will also consider applications with deposits of less than 5%.
• Skipton Building Society is deeply committed to supporting first-time buyers with a wide range of mortgage options that help overcome the financial hurdles associated with purchasing a home.

The Importance of Expert Guidance

Navigating the mortgage process for the first time can be complex, but with the right support, it doesn’t have to be overwhelming. Our experienced mortgage consultants are ready to assist you with personalised guidance every step of the way. 

For an initial consultation, speak with our experts or call us at 01628 564631. We're here to help you navigate your mortgage journey with informed advice and care.

Take the first step towards securing your mortgage today.

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

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