Deposit-free mortgages have returned for the first time since the financial crisis, as lenders help renters onto the property ladder.
Skipton Building Society has launched a 100pc mortgage exclusively for renters aged over 21, who will not need a cash deposit to buy their first home. Instead, potential buyers must pass a credit and affordability check, as well as show evidence of at least 12 months of on-time rent payments.
The bank said that it anticipated high demand for the deal and warned that it may sell out quickly.
The Yorkshire-based lender unveiled plans for its 100pc mortgage last month, but has now confirmed the details of the deal, which will come with a five-year fixed rate of 5.49pc. The monthly mortgage payments cannot be higher than the buyer’s average rent over the most recent six months.
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