By: Sarah Williams

As a mortgage broker, we are always on the lookout for innovative and exciting new products that can help our clients achieve their dream of owning their own home. That's why we're delighted to share the news that Skipton Building Society has launched a new mortgage product that is specifically designed for renters who are looking to buy their first home without a deposit.

The new product is unique in that it does not require a guarantor, which sets it apart from many other no-deposit deals on the market. To be eligible, potential buyers must have a good credit history and a record of on-time rental payments for at least 12 months. The product is aimed at first-time buyers who are finding it difficult to save for a deposit and want to get on the property ladder.

The product will be fixed for five years. However, we can confirm that the product will be available for up to 100% of the property value, without the need for a family member to act as a guarantor. This means that first-time buyers who may not have the support of family members with property equity can still access this exciting opportunity.

Stuart Haire, the Skipton group CEO, stated that the aim of the product is to help those who are "trapped in rental cycles" and are unable to save for a deposit to own their own homes. With rents still increasing, the new product could be a game-changer for first-time buyers who have been priced out of the property market.

The new 5-year fixed rate mortgage comes with an interest rate of 5.49%, slightly up from the average 5-year fix that comes at 5%. The maximum loan value is £600,000, which should be enough for most first-time buyers. While the interest rate may seem higher than some other products on the market, it's important to remember that this product offers a unique opportunity for buyers who don't have a deposit.

Are you eligible?

• You must be 21 years or older and a first time buyer 
• You must have proof of having paid at least 12 months consecutive rent within the last 18 months
• You must have 12 months experience paying all household bills (e.g. utility bills, council tax etc)
• If you use a deposit, it must be less than 5% of the purchase price
• You must be looking for a loan of £600k or less
• You must have no missed payments on credit commitments (e.g. mobile phone bill) over the last 6 months

As with any mortgage product, it's important to seek professional advice before making a decision. However, we believe that Skipton's new product could be a great option for first-time buyers who are struggling to save for a deposit. We're excited to see how this product develops and look forward to helping our clients take advantage of this exciting opportunity. If you're interested in learning more about Skipton's new mortgage product, get in touch with us today.