Bank creates first ‘no-deposit’ mortgage based on ability to pay rent after house prices soar by £39,000 in two years
A BANK has created the first ‘no deposit’ mortgage to offer loans based on Britons’ ability to pay their previous rent and bills, after house prices skyrocketed by £39,000 in two years. year.
It comes after house prices skyrocketed by £39,000 in two years, according to Skipton Building Association.
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A study of 2,000 adults currently living in rental housing found that 86% wanted to step up the property ladder.
However, due to the cost of living crisis, 41% of adults say home prices in their area are rising so fast they can’t keep up.
Research commissioned by Skipton Construction Association to mark the launch of a new mortgage, ‘Track record’help tenants buy their first property without a deposit.
The deal is open to 21-year-old first-time buyers across the UK, meaning tenants can get mortgages worth up to 100% of the property’s value – eliminating the down payment altogether. pile.
CEO of Sponsoring House in Skipton“Over 20 years, the number of private renters has more than doubled, and many of these renters hope to one day own their own home continues to decline,” said Charlotte Harrison.
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“We need to tackle the UK’s housing affordability crisis to allow more people, especially renters who are stuck in the rental cycle, to buy a home.”
Ms. Harrison added: ‘That’s why we’ve grown track record mortgages, which will allow those in the rental cycle to access the property ladder for the first time.”
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Experts say the new deal could help some prospective landlords “get off the rental wheel”, although some say affordable housing is still in short supply.
Andrew Montlake, chief executive of mortgage brokerage Coreco, said: “There are many potential buyers who have demonstrated that they can afford to pay rent at current highs, but don’t have enough options. convenient to meet growing deposit levels and feel constantly at the mercy of rising rents.”
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Mr Montlake added: “This new product won’t be right for everyone, but it will help some new generation homebuyers get out of the rental wheel and enjoy the security of owning their own home. themselves.”
According to Rightmove, the average rent for first-time buyers is £1,120 a month, up 11% from last year.
