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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


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We can help you decide the best option for you. Get in touch on 020 8154 7280.