Skipton Building Society has today announced an exciting new range of mortgage products aimed specifically at first-time buyers, offering greater flexibility and accessibility in an increasingly challenging property market. This new range comes at a time where first time buyer confidence seems to be returning to the market, and more and more new buyers are enquiring about purchasing. With an array of innovative features, these Skipton first time buyer mortgage products are designed to remove some of the biggest barriers that first-time buyers face. In this article I am going to run through the new product range and what this could mean for new buyers.
Key Features Of The New Skipton First Time Buyer Range
For several months now I have personally observed an increase in the number of first time buyer enquiries coming through our door at Oportfolio mortgages. To be completely honest, I did not expect this….at least not so quickly. The mortgage and property market has taken a beating over the last few years since COVID, and many of us thought that the first time buyer confidence in the market was still very low. But this doesn’t appear to be the case. With an uptick in enquiries, there must naturally be a shift toward introducing more first time buyer friendly mortgage options.
The new mortgage range from Skipton includes several attractive options, catering to a variety of applicants:
Maximum Loan-to-Value (LTV)
Applicants who are all on a VISA, regardless of the type (spousal, skilled worker, refugee, etc.), can secure a mortgage with a maximum LTV of 90%. However, if at least one applicant is a UK national, has Indefinite Leave to Remain, or is from the EU area with a settled or pre-settled share code, they may qualify for an LTV of up to 95% or even 100%.
Residency Flexibility
One of the standout features of this range is the flexibility regarding time in the UK. Applicants need to have been in the UK for only one year to be eligible, subject to standard credit scoring and profile requirements.
Visa Requirements
Typically, applicants need at least two years remaining on their VISA. However, Skipton is willing to assess cases on their individual merits if the remaining time is less than two years, considering factors like job role, family ties, and previous VISA renewals.
Gifted Deposits
The new range also supports 100% gifted deposits, provided the gift is from a direct blood relative of the borrower. Deposits sourced from overseas are also considered, subject to Skipton’s policies.
Additional Benefits And Features
Understanding the financial challenges first-time buyers face, Skipton Building Society has introduced several incentives to ease the burden:
- £1,500 Cashback: Selected products within the range offer £1,500 cashback upon completion, provided the loan amount is at least £125,000. Additionally, Skipton Lifetime ISA customers can receive an extra £250 cashback.
- High Loan-to-Income Ratios: Borrowers can access up to 5.5 times their income on loans with up to 90% LTV, offering greater borrowing potential.
- No Completion Fee & Free Valuation: There are no completion fees, and borrowers benefit from a free standard valuation for mortgage purposes.
- Up to 40-Year Terms: The new range also offers mortgage terms of up to 40 years, providing lower monthly payments over an extended period.
- Income Booster & Track Record Mortgage: The Income Booster allows for enhanced borrowing capacity, while the Track Record Mortgage caters to those with a proven history of rent payments, offering up to 100% LTV.
- Support for Government Schemes: The products are compatible with major government initiatives, including First Homes England and Shared Ownership, ensuring even more options for buyers.
First Time Buyer Advice
For first-time buyers navigating the complexities of purchasing a home, securing the right mortgage is crucial. With so many options available, it’s essential to get personalised advice tailored to your specific situation. At Oportfolio Mortgages, we specialise in guiding first time buyers through the process, ensuring they find the best possible mortgage to suit their needs. Our expert advisors are on hand to help you understand your options and make informed.
To further support first time buyers, we’ve launched a new series on YouTube called “Advice for First-Time Buyers.” This series offers valuable tips, guidance, and insights into the home-buying process in the UK. Whether you’re just starting to think about buying your first home or are ready to take the plunge, our series is designed to equip you with the knowledge you need to succeed.
For personalised advice and to explore your mortgage options, contact us at Oportfolio Mortgages today, and take the first step towards your dream home.
