The Return of the 100% Mortgage?


Barlow Irvin’s Director, Gary Oxborough, gives his thoughts on 100% Mortgages – but what are they? Here, he explains.

You may have seen in the press recently that a mortgage lender has recently introduced a mortgage where you do not need to have any deposit to buy a property. Is this the return of the infamous 100% mortgage?

While this is certainly a 100% mortgage, it is very specific in its target market and I’m sure it won’t herald a rush from other lenders to launch their own 100% mortgages.

The mortgage is from Skipton Building Society, called the “Track Record Mortgage”. It is quite an innovative product, which is aimed purely at first time buyers who, due to renting, have been unable to save for a deposit.

The way it works is that you will need to have been renting for at least 12 months prior to applying for the mortgage and able to show that you have made all your rental payments on time, along with all other household expenses. If this is the case, and you have a clear credit history, then you may be able to borrow up to 100% of the purchase price of a property, as long as the mortgage payment is no higher than the average of your last 6 months’ rental payments.

You will still need to pass the affordability criteria set by the lender and you won’t be able to borrow more than 4.49 times your income. One important point is that you don’t have to buy the property you are currently renting.  If you are buying as a couple, you can have lived in different rented properties, as long as you both meet the criteria in terms of maintaining your payments over 12 months.

I think this a very innovative product from Skipton Building Society and certainly meets a need in the market. There are lots of things to consider when taking out a mortgage like this and it is vital that you take expert advice to assess the pros and cons of a 100% Mortgage, but if it is suitable for you, then it is a great option.

As always, my award-winning team of mortgage experts are on hand to talk through the options. Get in touch to see what is best for you.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. 

About the author 

The Barlow Irvin Team

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