If you can rent a home, you can buy your own

If you can afford to pay hundreds of pounds in rent every month, you should be able to get a mortgage.

That’s the view of the Skipton Building Society which has relaunched its 100% mortgage.

Aimed specifically at renters who can afford their monthly rent bill but haven’t managed to save a deposit, the Track Record Mortgage will quite literally open new doors for thousands of first time buyers.

The lender will require proof of at least 12 months continuous rent payments at a level equal to or above the monthly mortgage repayment they’ll need, and no missed repayments on any other loans. (Full criteria available here.)

Repayment will be between five and 35 years, and the interest rate will be fixed at 5.49% for the first five years.

With average city centre rents in Manchester topping £1,600 a month, a move to the country could be an attractive option and see renters swapping a high rise flat for a four bedroom detached house.

Swap the city centre for a new build home at Stubley Meadows in Littleborough or Brook View in Wincham. Both are on a train line to central Manchester stations, offering an easy commute for workers.

While some 100% mortgages do already exist these require some third party financial support or for homebuyers to have a parent acting as guarantor.

Other lenders are expected to follow Skipton’s example and launch a No Deposit Mortgage of their own.

Until then, there are currently more than 5,000 mortgages available from a variety of lenders, all offering different rates and with different selection criteria.

For more information on the Skipton 100% mortgage visit the Skipton Building Society or see the Money Saving Expert for analysis and advice.

For further information and FAQs click here to visit the Skipton Building Society website.