Return of 100% loan to value mortgage

The housing market needs first-time buyers to keep it moving. While the average age of first-time buyers has been creeping up and now stands at over 33 years of age, the number of buyers has dwindled, falling by more than 10% between 2021 and 2022. People are finding it harder and harder to make the leap from renting to buying. When buying your first home, it is normal to need to pay a deposit of around 10% of its value. A bank or building society will then loan you the rest. The launch of Skipton’s new product, called the ‘Track Record Mortgage’ could be just what the market needs to reverse these figures.

While 100% mortgages have been available before, this one specifically supports those with a strong rental record. To be eligible, applicants must have paid 12 monthly rental payments in a row over the last 18 months, paid household bills for the past year and be up to date with any loan or credit card repayments. In the current economic climate, with so many finding it impossible to save for a deposit while paying rent, this removes that obstacle, creating fresh opportunities for renters to become homeowners.

Charlotte Harrison, CEO of Home Financing at Skipton:

“We recognise there’s a clear gap in the market for people who have a strong history of making rental payments over a period of time so can evidence affordability of a mortgage – but there is currently no solution for them to buy a property due to lack of savings or access to family wealth. It is time for a re-think on these massive barriers to home ownership, and we’re proud to take the lead on bringing to the market, solutions for such a massive social problem.”

This product is fairly limited in scope, available only over five years at a fixed rate of 5.49%. This will limit Skipton’s exposure, as will the maximum term of 35 years. The maximum loan available is £600,000.

While there is excitement around this announcement there is also some caution, specifically around the risk of negative equity. Skipton will need to carefully consider each applicant and assess their suitability.

Henry Knight MD of Springtide Capital comments:

“100% mortgages have returned to help first-time buyers start their journey on the property ladder. Mortgage applicants and lenders need to keep the potential risks in mind when considering this type of mortgage. However, with applicants needing to show they can meet all their monthly bills consistently, it shows the lender is taking a responsible approach.”

This could be a game changing moment for those who need help the most.

It is very important to consider your options in detail when looking at any type of mortgage. We can help you decide the best option for you. Get in touch on 020 8154 7280.


First-time Buyer Statistics and Facts: 2023 |

A simple guide to buying your first home – Times Money Mentor (

Press Release Article – Skipton Building Society


Mortgage market review

In a month where inflation remains stubbornly high, The Bank of England’s Monetary Policy Committee (MPC) continues to revise monetary policy to meet the 2% inflation target. At its meeting this month the MPC voted to increase Bank Rate by 0.25 percentage points, to 4.5%.

This is the 12th consecutive rise in interest rates. The MPC in its summary, has not ruled out further rate rises to help meet their 2% target in the medium term.

Official bank rate:

Source: Bank Rate history and data | Bank of England Database

Borrowers may be concerned about whether this is the right time to take out a mortgage. Seeking advice is vital to ensure borrowers can comfortably afford to refinance based on their own individual circumstances.

There are however, many positive narratives across the mortgage market this Spring:

Figures from the Office for National Statistics released on the 24th May show that inflation has started to fall, down to 8.7 per cent in April, down from 10.1 per cent in March.

  • The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 7.8% in the 12 months to April 2023, down from 8.9% in March; on a monthly basis, CPIH rose by 1.2% in April 2023, compared with a rise of 2.1% in April 2022.
  • The Consumer Prices Index (CPI) rose by 8.7% in the 12 months to April 2023, down from 10.1% in March; on a monthly basis, CPI rose by 1.2% in April 2023, compared with a rise of 2.5% in April 2022.

New buyers, who are vital to keep the market moving will be able to access Skipton’s new product, this May. Called the ‘Track Record Mortgage’, it is the UK’s first 100% LTV Mortgage exclusively for renters. The product will enable renters to access the property ladder without a deposit. Tenants who can evidence affordability for a mortgage and have a strong track record of rental payments can borrow up to 100% of a property value.

House price growth shows signs of stabilisation in April according to the Nationwide house price index:

  • April saw a 0.5% rise in house prices after seven consecutive falls
  • Annual rate of house price growth improves to -2.7% from -3.1% in March
  • The average UK house price is £260,441

As global and economic concerns continue to influence the mortgage market, speak to one of our experienced team today to find the right solution for you. Call us on 020 8154 7280.


Consumer price inflation, UK – Office for National Statistics

Press Release Article – Skipton Building Society

House price growth shows signs of stabilisation in April (