Are you a First Time Buyer, currently renting but struggling to save the big deposits needed to buy your first home? If you are then good news, there is now an option which could make being a homeowner closer than you think.

In May this year Skipton Building Society launched an exciting new mortgage product called ‘Track Record Mortgage’. This is a no-deposit needed, 100% mortgage which can hopefully help thousands of renters finally be able to get their foot on the property ladder without the need of a hefty deposit.

This is the first mortgage product of its kind in the UK since 2008 as other lenders who offer 100% mortgages are only available to applicants with a guarantor or family support which just isn’t always possible.

There are certain eligibility criteria for this mortgage, as you can imagine, with the key points being:

• Each applicant is a first-time buyer – never owned a property
• Each applicant is aged 21 or over
• You have less than a 5% deposit
• Each applicant has no missed payments on debts / credit commitments over the last 6 months, as a minimum
• You want to borrow up to £600,000
• You meet the household-to-household criteria
• You have proof of having paid at least 12 months rent in a row in the UK, during the last 18 months
• You must also have experience paying all household bills for at least 12 months in a row, during the last 18 months
• You’re not looking to buy a property in Northern Ireland
• You’re not looking to buy a new build flat

But how much can you borrow? Unlike other traditional mortgages where affordability is based on your income and outgoings, Skipton’s 100% mortgage is based on the rent you currently pay. The amount you can borrow is not allowed to be more than the equivalent of what you pay each month in rent. So basically, if you are paying £850 per month rent, your mortgage payment couldn’t exceed £850 per month.

Some examples:

£1,000 rent per month – Maximum Mortgage £163,000

£2,000 rent per month – Maximum Mortgage £325,000

Bear in mind, that this amount isn’t guaranteed. After they assess how much you can borrow based on your current rent, you will also have to pass Skipton’s own affordability calculations. Whichever number is lower is the amount you will be able to borrow.

This is a great product to be added to the market as I’m sure some of you will agree but, there are definitely some areas which you may need some guidance on before understanding how this could look for you. We would recommend that you seek professional advice to understand whether this would be a suitable option for you.