Skipton Building Society to Offer a 100% Mortgage Product!

While a handful of other no-deposit deals are available, they all need the financial backing of family or friends. Skipton Building Society says while its deal requires 12 months of on-time rental payments and a good credit history, it does not need a guarantor (the first to launch since 2008).

Its five-year fixed mortgage works similarly to other fixed mortgage deals on the wider market, in that you are charged the same interest rate for a five-year period. The main difference is that Skipton's new deal doesn't require a deposit.

This mortgage is aimed at renters who are struggling to save for a deposit, although if they do have a deposit as long as it is smaller than 5%, they can also apply.

To be eligible for Skipton’s 100% mortgage you need to:

• Need to be a first-time buyer and 21 years of age or above.
• Need to have been renting for at least 12 consecutive months out of the past 18 and be up to date on all rental payments during this period. Proof of this will be required, which could be via bank statements or confirmation from a letting agent.
• Need to be up to date for at least 12 consecutive months out of the past 18 on household bills, such as council tax and electricity and/or gas. Again, proof will be required.
• Can't have missed any other repayment commitments over the past six months – such as Netflix subscriptions, mobile phone repayments and so on. Any defaults will show on your credit report.
• Aren't looking to buy a new-build flat.

With Skipton's 100% mortgage, the amount you can borrow is not allowed to be more than the equivalent of what you pay each month in rent. In other words, if you pay £1,000 a month on rent, your Skipton 100% mortgage couldn't cost you more than the equivalent of £1,000 a month either.