Skipton Building Society has introduced a new mortgage offering designed specifically to relieve the pressure on first-time purchasers. This new, creative “Delayed Start” mortgage enables borrowers to put off making payments for the first three months they live in their new houses. This feature is especially welcome and sorely needed as everyone makes this often-expensive transition.
This one of a kind provision is offered only to first-time buyers who are borrowing no more than 95% of a property’s value. According to a recent survey conducted by Skipton, many new homeowners spend upwards of £30,000 during the initial three months of moving in. The survey found an even more alarming number — almost two-thirds of first-time homebuyers experience being “financially strained” during the process. They often encounter surprise expenses along the entire relocation journey.
Mortgage adviser David Hollingworth of L&C Mortgages welcomed the release of the new product. He promised that it will allow people to “get their feet under them” before they start facing mortgage payments. It’s a feeling that a lot of first-time buyers can relate to. Instead, they frequently tell us that their whole move is going to cost far greater than they initially anticipated.
That’s where the new Skipton mortgage product comes in, allowing you to take a payment holiday at the beginning. Know this — interest will begin accruing immediately on day one. Unfortunately, this interest will later be added to the total mortgage balance once payments begin after the three-month period ends. A Skipton spokesperson quoted the aims of the new product. It’s designed to help first-time buyers with the additional expenses associated with buying a new home and moving in.
“This will enable first-time buyers to settle into their new home with no mortgage repayments due for the first three months, allowing them to manage the extra costs associated with buying and moving into their first property.” – Skipton spokesperson
This launch follows Skipton’s earlier efforts in 2023, which included a deal allowing renters to borrow 100% of a property’s value. It is similar to a 2014 offering from Leeds Building Society. That program included credit card-style “0%” introductory interest rates. Customers of the legacy product were still forced to repay the capital within the first few months.