What is Skipton Building Society's 100% Mortgage?

Key Takeaways

• A 100% mortgage allows you to borrow the entire property purchase price without a traditional deposit.
• Also known as 100% LTV (Loan to Value) mortgages, they appeal to investors without immediate cash on hand.

• Lenders assess potential rental income and investor financial stability.
• Interest rates are often higher due to increased risk.
• Guarantor mortgages and family deposit mortgages reduce financial strain and secure lenders against default.

• Higher interest rates and additional fees (arrangement, booking, valuation).
• Risk of negative equity if property value drops below the loan amount.

• Interest-only mortgages: Lower monthly payments, potential profit from property appreciation.
• Limited company buy-to-let mortgages: Tax efficiencies, succession planning, joint-venture options.

Are you struggling to save for your deposit? Whether you’re a first-time buyer moving out of your parents’ house or a renter looking to get on the property ladder, Skipton Building Society’s new 100% mortgage is here to help. This five-year fixed no-deposit deal is designed to help potential buyers purchase homes.

If you’re ready to take the leap, learn more about 100% mortgages, how they work and who’s eligible in this handy guide.

How does Skipton Building Society’s 100% mortgage work?

A 100% mortgage is a five-year fixed deal with a mortgage term of up to 35 years and a 5.49% interest rate. The amount you can borrow must be equivalent to or less than your monthly rent.

For example, if your rent is £1,500, your 100% mortgage can’t be more than £1,500 a month.

Skipton's 100% mortgages are unavailable on new build flats. If you have a deposit, this must be at most 5% of the purchase price to apply for a 100% mortgage in the UK.

Can I get a 100% mortgage?

You must determine your eligibility before applying for Skipton’s 100% mortgage. You must:

• Be age 21 or over
• Be a first-time buyer
• Be a renter moving household-to-household
• Have paid rent for 12 consecutive months within the last 18 months
• Have paid utility bills for 12 months
• Look for a loan equal to or less than £600,000

What does household-to-household mean?

Household-to-household means the same people (or the same person) applying for the 100% mortgage have been renting together for the past 12 months. 

What are the other options for first-time buyers?

If you’re a first-time buyer but don’t qualify for the 100% mortgage, other low-deposit schemes may suit your needs.

Deposit Unlock

Deposit Unlock enables first-time buyers to buy their new home with only a 5% deposit on mortgage products up to the value of £750,000.

Deposit Boost

If you have a 10% deposit, you can boost it by 5% with Deposit Boost. This means you’ll have a 15% deposit and can access more competitive mortgage rates.

Parent Power

With Parent Power, parents can help you save for a deposit, guarantee your mortgage or act as joint applicants. We can boost your deposit by up to 5% of the purchase price.

Key Worker Deposit Contribution

Key worker? We’ll add £1,000 towards your deposit for every £20,000 you spend on your new David Wilson home with our Key Worker Deposit Contribution.

Find out more about applying for a 100% mortgage in the UK. Or explore our new homes across the country and unique offers to help you move.

Own New - Rate Reducer

Own New - Rate Reducer is a brand-new scheme available on new build homes that could mean lower mortgage rates and reduced monthly payments.

Find out more about applying for a 100% mortgage in the UK. Or explore our new homes across the country and unique offers to help you move.