/ By Sue Howsam / Concise News • Industry News/ 0 Comments

SKIPTON LAUNCHES DEPOSIT FREE 100% MORTGAGE

Skipton Building Society has unveiled details of the first 100% loan-to-value mortgage launched since the 2008 financial crisis.

 Aimed at renters, the lender’s Track Record Mortgage aims to help tenants onto the property ladder without a house deposit and removing the dependency on the Bank of Mum and Dad or guarantors.

How does it work?

This deposit-free 100% mortgage enables first-time buyers to purchase a home by providing evidence that they have made rental payments for at least 12 months. Usually, a deposit between 5% and 10% is required for a buyer to apply for a mortgage, but renters often struggle to save for a deposit while paying rent.

This new product is exclusively available through Skipton Building Society on house purchases and will allow borrowers to side-step the usual deposit requirements, enabling renters to buy a home with a 100% mortgage.

Who can apply for this mortgage?

You might be eligible for this mortgage if:

Each applicant must be a first-time buyer aged 21 or over.

  • Applicants cannot have any missed payments on debts or credit commitments like mobile phones within the last six months.
  • They are not looking to buy a new build flat.
  • Borrowers will need proof of having paid rent for at least 12 months in a row within the last 18 months.
  • They have 12 months of experience paying all household bills within the previous 18 months.

Important points to consider before applying!

You need to make sure you’re aware of what it means to have a zero or minimal deposit mortgage, as there is a higher risk of negative equity. You would be in negative equity if you owe more on your mortgage than what your home is worth.

You could lose your home if you don’t keep up your mortgage repayments.

Want to take the next Step?

 At Concise we will help you through the process step by step working out how much you can borrow, how much it will cost, and what type of mortgage may be most suitable for you. We will even take care of all the paperwork for you, so you don’t need to worry about a thing.

For further information on the Track Record mortgage or to make an appointment please contact us at enquiries@concisefs.co.uk or on 01522 567222.

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

/ By Sue Howsam / Concise News/ 0 Comments

UK House Prices In Surprise Rise In April, Says Nationwide

UK House Prices In Surprise Rise In April, Says Nationwide

UK house prices rose by 0.5% in April after seven consecutive months of falls, according to the Nationwide building society.

Economists had been expecting average prices to decrease during the month. Prices had been falling since August last year, after Liz Truss’s mini-budget sparked turmoil on financial markets and drove up borrowing costs.

Nationwide is predicting a “modest recovery” in the housing market as mortgage rates start to come down. But it said any improvement would be “fairly pedestrian”, as household finances remain under pressure and average earnings have been failing to keep pace with inflation.

The cost of an average home rose by 0.5% between March and April to hit £260,441, said the lender, which bases the findings on its mortgage data. However, that was still 2.7% lower than a year ago. Conditions in the housing market have “taken a while to settle down” since the mini-budget, the lender said.

In September, former chancellor Kwasi Kwarteng promised billions of pounds of tax cuts without explaining how they would be paid for. It spooked financial markets and drove mortgage rates up to a 14-year high.

Rates are now “well below” those levels, but remain more than twice what they were a year ago, Nationwide said. However, the number of mortgages being approved is picking up and households feel more confident about their finances, said Robert Gardner, Nationwide’s chief economist.

“If inflation falls sharply in the second half of the year, as most analysts expect, this would likely further bolster sentiment,” Mr Gardener said.

“This, in turn, would also be likely to support a modest recovery in housing market activity.”

Rising prices will be a blow to potential first-time buyers, who are already facing rising rents. The continuing rise in many regular bills and food prices is also adding to the financial strain. However, views among housing market analysts are mixed, with some suggesting that house prices are not guaranteed to rise.

Samuel Mather-Holgate, from advisory firm Mather and Murray Financial, said: “The housing market always sees a boost in the spring, but don’t confuse this data with the green shoots of recovery.

“The annual figure is still down, and this is expected to get worse over the next few months, especially if the central bank increases rates again this month.”

But Tomer Aboody, director of property lender MT Finance, said: “Buyers are finally making their move after months of waiting and stalling. More transactions are definitely needed for the overall strength of the housing market.”

Source: BBC News 03/05/2023