Skipton’s new 100% mortgage – who is eligible and how does it work?

The Skipton Building Society has made headlines today by launching a new 100% mortgage – the first true scheme since the financial crisis in 2008.

What is it?

The Skipton’s new ‘Track Record’ mortgage allows would-be first time buyers who can prove at least 12 months track record of paying rent and bills the chance to buy their first home without having to save for a deposit.

The product has been launched in response to a common complaint that it’s impossible to save for a deposit on top of paying rent and bills.  The Skipton are saying that if you can prove you can run a household budget then this provides enough security for them to lend without a deposit.

It’s a regular mortgage so there’s no requirement for additional security or a guarantor.  As at today’s launch the Skipton are launching a 5 year fixed rate at 5.49% with no product fee.

The maximum loan available is £600,000, but the mortgage payment can’t be greater than the rent payment which can be proven for the last 12 months, and the mortgage can’t be more than 4.49 times the combined total of all applicants’ annual income.


Who is eligible?

  • Each applicant (of which there can be up to four) must be a first time buyer
  • Each applicant must be at least 21 years old
  • Applicants must be able to prove they have paid rent and bills on time for 12 months in a row, in the last 18 months
  • Applicants must have a clean credit history with no missed or late payments in the last 6 months
  • The name(s) on the mortgage application must be the person(s) who was paying the rent.  So for example if you were part of a house-share and only 1 of you wanted to buy then you wouldn’t be eligible – you need to prove you’ve been responsible for the rent and bills.

As with any mortgage, there are lots more rules and criteria, so anyone interested in the scheme should contact a mortgage adviser for more information and to find out if they’re eligible.  We’d be happy to help you explore your options.


What’s the verdict?

We at Mortgage Medics think this is a fantastic innovation to help those who can prove they can afford to run a household, but who don’t have the extra surplus income to save for a deposit, and who don’t have the luxury of help from the bank of mum and dad.

As with any financial decision it’s important to take independent advice and it’s worth remembering that although this scheme is getting a lot of headlines there may be a more suitable solution for you depending on your personal circumstances.


If this has got you thinking, we’d be delighted to help.  Get in touch and we’ll be help you understand what’s possible, or sign up to our monthly newsletter, to keep your finger on the pulse.


Sam Murphy – 9th May 2023