Skipton to launch UK’s first 100% no-deposit mortgage and what it means for first time buyers.

In an era of skyrocketing rents and soaring property prices, saving for a mortgage deposit can seem like an insurmountable challenge for many first-time buyers. However, Skipton Building Society has introduced a ground breaking solution with its 100% mortgage scheme. Let's delve into the details of this innovative offering and explore its potential benefits and drawbacks for aspiring homeowners.

Breaking Down the Eligibility Criteria

Skipton's 100% mortgage is exclusively available to first-time buyers, with an additional requirement of having paid rent in full and on time for a minimum of 12 consecutive months. Applicants must be at least 21 years old. Additionally, they need to demonstrate a history of timely rental payments and up-to-date household bill payments for at least 12 of the previous 18 months. Maintaining a clean repayment record, including non-financial commitments like subscriptions, is crucial. It is also worth noting that the scheme excludes the purchase of new-build flats.

No Deposit, No Problem

Unlike traditional mortgage products, Skipton's 100% mortgage eliminates the need for a deposit. This aspect makes it particularly attractive for first-time buyers who have struggled to accumulate substantial savings. Even those with smaller deposits (up to 5%) can also take advantage of this scheme, widening the scope of potential applicants.

Borrowing Based on Rent Payments

While most mortgages consider borrowers' income and expenses, Skipton's 100% mortgage takes a different approach. The loan amount is capped at the equivalent of the applicant's monthly rental payment. Essentially, if your monthly rent amounts to £1,000, the mortgage you qualify for cannot exceed £1,000 per month. This unique borrowing approach aligns with individuals' existing housing costs and helps ensure affordability.

Interest Rates and Comparisons

Skipton's 100% mortgage is offered as a five-year fixed-rate deal with an interest rate of 5.49%. Notably, this product comes with no fees, which can be advantageous for budget-conscious buyers. However, it's crucial to consider that the absence of a deposit comes at a premium. For those able to muster a 5% deposit, significantly cheaper five-year fixed-rate mortgages with a 95% loan-to-value (LTV) ratio are available. Potential applicants should carefully evaluate the long-term financial implications of their choices.


This scheme has the potential to revolutionize homeownership for first-time buyers who have been burdened by the struggle to save for a deposit. By leveraging their rental payment history, eligible individuals can step onto the property ladder with reduced financial barriers. However, it's essential to weigh the higher interest rate against the convenience of a deposit-free approach and consider other mortgage options available in the market.

Does this new scheme mean you’re in the market to buy a property in Leeds? Have you seen a property for sale on our website? Get in touch with our experienced team to discuss more on 0113 237 0000 or email satty@parklaneproperties.com.

Published on: 24 May 2023