First time buyers could benefit from 100% mortgages
The 100% mortgage from Skipton Building Society aimed specifically at first time buyers as a no-deposit deal could be good news for those looking for their first home.
The 100% mortgage from Skipton Building Society aimed specifically at first time buyers as a no-deposit deal at a five-year fixed rate of 5.49 per cent could be good news for people looking to buy at at our Elgar Park development.
Subject to criteria, a purchaser’s monthly mortgage payment cannot exceed the applicant’s average monthly rent from the last six months, and they must also prove a good credit history.
Mark Powell, Group Sales and Marketing Director, said: “The return of the 100 per cent mortgage will absolutely be a positive thing for many first-time buyers, enabling them to buy a home much quicker than they may have previously thought possible.
“There are many parts of the country where rent and mortgage payments are about the same for a similar property, so this will be a fantastic deal to take advantage of for those people. Getting on the property ladder and investing in your own home is a smart long-term move.
“However, there are some parts of the country where an average rent payment is likely to be significantly less than an average mortgage payment for a similar property, meaning that to take advantage of Skipton’s deal, some buyers may have to ‘trade down’ to buy a home.
“There are many people who will be happy with that, because after all, mortgage payments go towards full ownership of your own home while rent payments pay for the landlord to own the rental property.
“So, our advice to first-time buyers is this: do your research and make sure that a 100 per cent mortgage will benefit you.”
According to Rightmove*, tenants in Worcester can expect to pay c.£785 per calendar month (pcm) in rent for a two bedroom property, or c. £1250pcm for a three bedroom home.
We have a handy guide to help First Time Buyers understand the process of buying a new home: bloorhomes.com/first-time-buyers.
*Rightmove advertised rates at June 2023
**Mortgage rates and details are correct at time of publication - 14th June 2023. We advise that you speak directly with a Financial Advisor for the most up to date mortgage products available.