In a bold move that could revolutionise the UK housing market, Skipton Building Society has unveiled a no-deposit mortgage specifically designed to help renters trapped in the rental cycle.
Breaking the Rental Cycle
The innovative product targets long-term renters with a strong track record of rental payments but who struggle to save for a traditional deposit. Unlike conventional mortgages requiring 5-20% deposits, Skipton's offering requires zero deposit while still offering competitive rates.
How It Works
- Available for properties up to £600,000
- Maximum 4.49 times income multiple
- Five-year fixed rate options available
- Requires 12 months of on-time rental payments
The Housing Crisis Solution?
With average UK house prices now exceeding eight times earnings and rental costs consuming large portions of incomes, many potential buyers find saving for deposits nearly impossible. Skipton's product directly addresses this growing affordability gap.
"We recognise people's ability to pay rent isn't translating into mortgage opportunities," said a Skipton spokesperson. "This product gives responsible renters a pathway to homeownership."
Industry Reaction
Mortgage experts have welcomed the initiative but caution that borrowers should carefully consider their long-term affordability. "While revolutionary, potential buyers must remember they'll be borrowing 100% of the property value," warned one analyst.
The launch comes as the UK property market shows signs of cooling, with some predicting price corrections that could make homeownership more accessible.
