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Who is taking up 100pc mortgages?

Journalist: Alexa Phillips, The Daily Telegraph

ended 25. May 2023

Hello, I'm interested to hear from mortgage brokers about who is taking up 100pc mortgages offered by Skipton. Is there much interest from borrowers so far? Are you seeing any trends in terms of the types of buyers opting for these loans?

Many thanks,

Alexa Phillips

The Telegraph

9 responses from the Newspage community

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Justin Moy
Managing Director at EHF Mortgages
Well, we have had more than enough enquiries, but unfortunately not one client could take the product, either due to the extensive criteria or the limitation of the rental payment assessment. Many clients have rented a smaller property to attempt to save a deposit, not necessarily due to their affordability, but this has worked against them with this scheme. Hopefully Skipton will review the success of the product, look to see where more support is needed, and look to make some changes that will open this to more clients here in the south east.
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Ross Lacey
Director & Independent Financial Adviser at Fairview Financial Management
This particular 100% mortgage product hasn't been something that we've recommended just yet. With the criteria requirements that need to be met it won't work for everyone, but there's certainly a portion of aspiring homeowners who this kind of product is perfect for, e.g. high earners currently paying high levels of rent. They can make the monthly payments on a mortgage but can't save enough for the deposit.
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Rohit Kohli
Director at The Mortgage Stop
We've had several enquiries since the launch and all publicity came out but so far not a single client has been able to go forward either because the amount they can borrow capped at their current rent payments isn't anywhere near enough to buy in the area they live in or they just don't mee the complex criteria that Skipton have set out. I honestly don't believe that this was just a gimmick from Skipton, I think they had genuine intentions to disrupt the market but at the moment we just seem to be disappointing clients who have got their hopes up from all the PR they've seen on it since its launch.
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Kylie-Ann Gatecliffe
Director at KAG Financial
Whilst we have had an extremely large amount of interest on this product. In reality it is falling short in being able to help many people. In particular in areas where rents are average, or the tenants have been blessed with a landlord that has locked in their rent at the same amount for many years. For example, a client that is currently paying £950 per month in rent, can look to borrow around £177,000. Whilst this may be the average rent in my area - it does not match the average purchase price. There are some people that are happy to take a step back and go from a rented house, to an owned flat for example to get onto the housing ladder. But for many people, especially those with children - this is just not an option. On the flipside of this however those paying higher rental payments (in the south for example) do have a much better chance of it working for them.
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Jamie Lennox
Director at Dimora Mortgages
So far there has been zero take-up in the East of England, with current house prices being so high and the requirement for the new mortgage payment to not be any higher than the rent makes the chances of using the scheme in the East slim to none.
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Gary Bush
Financial Adviser at MortgageShop.com
The new rental history assessed 100% mortgages have been a bit of a slow burner so far - plenty of interest but I think it took the first-time buyers by surprise to be honest. I think that once they have discussed the subject between them, checked the terms of their rental agreements, and looked at any available and suitable properties we'll then see some movement but it's early days yet.
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Jennifer O'Neill
Owner at Athena Mortgages
We have had many new enquiries for the new 100% mortgage. It has given people who have rented longer term a bit of hope that they may be able to buy in the foreseeable future. It has also enabled them to spend appropriate time looking at their finances and their credit with the aim to improve both. Sadly, for many, the amount they are paying in rent does not equate to a mortgage payment on a house they would want to buy. What people want to rent and what they want to buy may not be the same.
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Rob Gill
Managing Director at Altura Mortgage Finance
We're seeing interest from exactly the kind of clients you'd expect, first- time buyers with strong incomes who haven't been able to save a deposit, partly because of sky-high rents they've had enough of. It's proving a very well-targeted product in terms of client enquiries.
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Christian Duncan
Managing Director at Manchester Mortgage Centre
Since skipton have released its 100% mortgage product, they have been the hot topic of conversation between brokers and potential clients. We have taken around 15 enquiries surrounding the product offering however not a single client has met the criteria set by Skipton. The two main stumbling blocks are the amount of rent they are currently paying. The amount is too low in comparison to the projected mortgage payment set out by Skipton. The biggest and most common is bad credit. The product is not open to applicants with adverse credit.