Delayed Start Mortgage from Skipton

Skipton Building Society has launched their ‘Delayed Start’ mortgage which could be great for first time buyers, as they won’t be required to make mortgage repayments for the first three months.

According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000. 71% of people said that they found the moving process was a lot more expensive than they had anticipated.

The idea of this new product is to allow first time buyers to settle into their new home without having the pressure of mortgage repayments for three months, meaning they can pay for the other costs that come with buying and moving into a new home.

Skipton’s research showed that first time buyers spend the following during and just after moving in (on average):

• £3,500 on furniture
• £2,600 on kitchen appliances
• £1,700 on removal companies

In addition to extra costs, 35% of people said they were having to pay for two houses as their rental properties overlapped, with 43% reporting that they found it hard to work out their move with the end of their rental lease. 

The Delayed Start mortgage will mean there will be no mortgage repayments due for the first three months and can also be taken out with Skipton’s ‘Income Booster’ product.

Interest will be accumulated from the start and will be added to the mortgage balance.

There are two and five-year fixed rates available:

• Two-year fixed rates start 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
• New-build properties - 95% LTV two-year fixed rate at 5.40% and five-year fixed rate at 5.20%.

If you have any questions about this product and would like to see if you fit the criteria, or would like to discuss another product, please give our team a call on 01628 507477.