In an effort to combat the fact that more and more people are struggling to get onto the property ladder, Skipton Building Society has recently made a big announcement. They have made a decision which means that for the first time since 2008, UK renters have the opportunity to borrow up to 100% of the value of a property. The key piece of information is that this will be made possible without a guarantor or deposit, which is huge news and will certainly benefit plenty of people. So, what exactly do you need to know about this ground-breaking decision?
Skipton building society is a financial institution which offers banking services to its members. The way they have decided the monthly mortgage payments will work is that they will not surmount to more that the average of the borrower’s previous 6 months’ worth of rent.
So, who is the offer open to? Skipton has decided to make this offer open to first-time buyers, and as with normal mortgages will be subject to affordability and the applicants’ credit scores. The applicant will also be required to demonstrate a good history of rental payments over the previous 12 months.
Skipton made this decision in response to people being unable to save for a mortgage, due to increased rent prices. They are hoping that this will be the perfect solution for those people who can feasibly demonstrate that they can make their rental payments, and are responsible to have a mortgage, but do not have the savings. Here at Eminence Mortgages, we hope that this will greatly benefit first-time buyers.