100% Mortgage UK – Everything you need to know

Getting on the property market in the UK as a first-time buyer can be quite challenging. Several factors contribute to the difficulty, including high property prices, limited housing supply, and strict lending criteria but 100% mortgages in the UK are here to help!

In many areas, property prices have been rising faster than income growth, making it harder for prospective buyers to save for a deposit. The requirement of a deposit is often a significant hurdle for first-time buyers, as it can be challenging to raise the necessary funds. As a result of this Skipton Building Society has just introduced a ‘100% mortgage scheme’ allowing first-time buyers the option to ‘borrow’ the equivalent amount of the entire value of the property.

In this article, we explain what 100% mortgages are and the eligibility you must meet before being approved!

What are 100% mortgages in the UK?

In recent years, the UK property market has seen soaring property prices that outpace income growth, presenting an obstacle for first-time buyers wishing to save for a deposit.

However, recognising this difficulty, a newly introduced scheme called the ‘100% mortgage scheme’ has been introduced. This initiative is a first-time buyer mortgage scheme which allows first-time buyers to borrow the entire value of the property, eliminating the requirement for a sizable deposit and offering a potential solution to the financial barrier that many first-time buyers are facing.

At current, Skipton Building Society is the first to reintroduce 100% mortgages in the UK since 2008. We suspect many mortgage providers will follow in their path.

What are the eligibilities for the scheme?

As with every mortgage scheme in the past, there are only limited applicants who will meet the specific eligibility criteria. While specific details may vary depending on the scheme’s guidelines, common requirements typically include:

• First-time buyers aged 21 and over
• Those who have rented for 12 consecutive months in the last 18 months
• Kept up with all rental payments
• People who have kept up to date for 12 months with household bills
• People who haven’t missed other repayment commitments (phone contract) in the past 6 months
• People who are not looking to buy a new-build flat

Additionally, lenders may assess factors such as employment stability, debt-to-income ratio, and affordability assessments to determine eligibility. It is important for interested individuals to thoroughly review the scheme’s terms and conditions and consult with mortgage advisors or lenders to understand the specific eligibility requirements and any other relevant criteria associated with the scheme.

How can Taylor Bracewell’s Residential Property team help?

Navigating the complexities of the conveyancing process can be a daunting and stressful experience. That’s why Taylor Bracewell’s Residential Property team of experienced professionals is here to provide expert assistance and support throughout the process.

With our expertise and personalised approach, our Sheffield & Doncaster Residential Property team are here to support you every step of the way, making your dream of homeownership a reality.

If you wish to speak with our Sheffield team, please call 0114 272 1884. For our Doncaster team, please call 01302 341 414. Alternatively, you can fill out our online enquiry form, and a dedicated member of our team will promptly reach out to you.