Skipton launches Delayed Start mortgage with no repayments for three months

Skipton Building Society has announced the launch of its Delayed Start mortgage, giving first-time buyers time to settle in with no mortgage repayments due for the first three months.

A survey from Skipton of 1,000 UK adults who bought their first house in the last five years found that first-time buyers are spending upwards of £30,000 in the first three months of moving into their new home, and this is causing 63% to feel financially strained, with 71% saying the entire moving process cost a lot more than they expected.

Skipton’s Delayed Start mortgage 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’s research revealed first-time buyers spend nearly £3,500 on average on furniture to kit out their homes, as well as £2,600 on kitchen appliances, and they are facing a bill of £1,700 on removal companies. 35% were juggling costs for two properties, as rental agreements overlapped with moving in. 43% found it difficult to line up their move with the end of their lease, with 26% blaming delays in the buying process.

Due to the growing list of expenses associated with buying and moving into a home for the first time, 61% said the financial blow took the shine off getting on the property ladder, and it took an average of eight months to recover financially.

Skipton’s Delayed Start mortgage offers no mortgage repayments due for first three months and can be taken out in conjunction with Skipton's joint borrower sole proprietor 'Income Booster' product.

Interest will accrue from day one and will be added to the overall mortgage balance.

The range offers two and five-year fixed rates, with two-year fixes starting from 4.87% at 90% LTV and 5.20% at 95% LTV. Five-year fixed rates start from 4.78% at 90% LTV and 5.00% at 95% LTV.

Skipton is also offering two products for new build properties - a 95% LTV two-year fix at 5.40% and five-year fix at 5.20%.

Jen Lloyd, head of mortgage products at Skipton, said: “Becoming a homeowner should be one of the most exciting milestones in someone’s life, however our research shows that first-time buyers are struggling and feel the cost associated with the move takes the shine off getting onto the property ladder.

“That’s why today I am pleased to announce the launch of Skipton Delayed Start mortgage, giving first time buyers some breathing space with no mortgage repayments due for the first three months.

“We hope that this product will help first-time buyers settle into their new home and help ease the strain of the costs that come with buying first home that go beyond the deposit. At Skipton, we believe in fairness, that’s exactly why we’ve launched our new Delayed Start Mortgage – to give first-time buyers a fair start in their new home, and the breathing space they need in those critical first few months.”