Skipton Building Society expands delayed start mortgage to cover more FTBs
The product is also now available on Skipton’s 100% track record mortgage and Shared Ownership deals.
Skipton Building Society has expanded its delayed start mortgage, now letting first-time buyers (FTBs) delay their first mortgage payment by one, two or three months.
The product is also now available on Skipton’s 100% track record mortgage and Shared Ownership deals.
Research from Skipton found FTBs on average spent more than £30,000 in the first three months after moving, with 63% saying they felt financially strained and 71% saying the process cost more than they expected.
Costs included furniture, appliances and removal fees, which many had not factored in when saving for a deposit.
Additionally, the research found 61% said the financial hit took the shine off getting on the property ladder, with buyers taking an average of eight months to recover financially.
More flexibility on the delayed start was designed in response to feedback, as some buyers wanted a full three months’ break while others only needed one or two months.
35% of those surveyed had to pay for two properties at once, while 43% found it hard to line up their move with the end of their lease, with 26% blaming delays in the buying process.
Jen Lloyd, head of mortgage products at Skipton, said: “Buying your first home should be an exciting milestone, but for many, the financial pressures of moving can feel overwhelming.
“That’s why we are pleased to enhance our Delayed Start Mortgage, to give buyers more choice, flexibility, and breathing space when they need it most.
“We believe it’s only fair to offer options that reflect people’s unique circumstances, because no two home buying journeys are the same.”
Lloyd added: “Whether it’s delaying repayments for one, two, or three months, or combining this feature with our 100% Track Record Mortgage or Shared Ownership options, we’re committed to helping buyers manage those upfront costs and settle into their new home.”
Andrew Montlake, CEO at Coreco, said: “Skipton has once again shown it is prepared to listen to the real financial pressures first-time buyers face and respond with practical, well-thought-out solutions.
“Expanding its Delayed Start Mortgage to offer one, two- or three-months’ flexibility, and extending it to the Track Record and Shared Ownership ranges, gives buyers far more choice and control at a point where costs can quickly mount up.
“For many first-time buyers, overlapping rent, moving costs and furnishing a new home can be as much of a challenge as the mortgage itself.”
Montlake added: “The ability to delay repayments, even briefly, can make a real difference in easing that early pressure.
“Combined with the Track Record mortgage, this goes a step further by helping renters buy without a deposit while giving them vital breathing room when rental payments overlap, as they so often do.
“As ever, this won’t be right for everyone and borrowers should take professional advice to understand how it fits their circumstances, but it’s encouraging to see lenders continuing to innovate.
“If we want to support the next generation onto the housing ladder, more products like this, rooted in real borrower behaviour, should be welcomed.”
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