Financial institution unveils new mortgage with no repayments for first three months

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Your help makes all of the distinction. Learn extra A serious UK financial institution has launched a brand new mortgage designed to offer first-time consumers a three-month reprieve from repayments, providing some respiratory area as they navigate the preliminary prices of homeownership.

Skipton Constructing Society’s ‘Delayed Begin Mortgage’ goals to ease the monetary burden on new consumers, though it is curiosity will nonetheless accrue from the outset, including to the general mortgage stability.

Accessible to first-time consumers with deposits as little as 5 per cent, the offers supply a variety of choices to go well with various wants and deposit sizes. For these with a ten per cent deposit, a two-year fixed-rate mortgage is out there at 4.87 per cent, whereas a five-year repair is obtainable at 4.78 per cent.

Debtors with a 5 per cent deposit can safe a two-year mounted charge at 5.20 per cent or a five-year repair at 5.00 per cent.

<img src="https://static.independent.co.uk/2025/02/20/8/12/first-time-buyer-stock-housing-house-young-couple.jpeg" srcset="https://static.independent.co.uk/2025/02/20/8/12/first-time-buyer-stock-housing-house-young-couple.jpeg?quality=75&width=320&crop=3%3A2%2Csmart&trim=0%2C0%2C0%2C0&auto=webp 320w, https://static.independent.co.uk/2025/02/20/8/12/first-time-buyer-stock-housing-house-young-couple.jpeg?quality=75&width=640&crop=3%3A2%2Csmart&trim=0%2C0%2C0%2C0&auto=webp 640w" loading="lazy" alt="Skipton Building Society’s ‘Delayed Start Mortgage’ aims to ease the financial burden on new buyers" class="sc-1mc30lb-0 QHifS inline-gallery-btn"/> open picture in gallery

Skipton Constructing Society’s ‘Delayed Begin Mortgage’ goals to ease the monetary burden on new consumers (Getty Photographs) Recognising the precise challenges of buying a brand new construct property, Skipton additionally gives tailor-made offers for these consumers. A two-year fixed-rate New Construct mortgage is out there at 5.40 per cent for these with a 5 per cent deposit, and a five-year repair at 5.20 per cent, additionally with a 5 per cent deposit requirement.

Importantly, all these offers are provided with none related charges. Whereas the delayed compensation function offers a welcome buffer, potential consumers ought to rigorously take into account the long-term implications of accruing curiosity from day one.

The society pointed to analysis carried out by OnePoll in April 2025 amongst 1,000 individuals who had purchased their first dwelling up to now 5 years, which discovered seven in 10 (71 per cent) stated the shifting course of value considerably greater than that they had anticipated and almost two-thirds (63 per cent) felt financially strained.

Skipton’s analysis indicated that first-time consumers spend almost £3,500 on common on furnishings to package out their properties, in addition to £2,600 usually on kitchen home equipment and £1,700 on elimination firms.

On common, first-time consumers stated it took them eight months to recuperate financially from the prices of shifting.

Simply over a 3rd (35 per cent) of first-time consumers have been juggling prices for 2 properties for some time, as a result of their rental settlement overlapped with shifting in.

Skipton’s new mortgages might assist take the sting out of paying further stamp obligation prices for some aspiring home-owners.

<img src="https://static.independent.co.uk/2025/03/06/00/0a5242757a2359109cd06b0ff5e6324cY29udGVudHNlYXJjaGFwaSwxNzQxMjU4NDgw-2.9279134.jpg" srcset="https://static.independent.co.uk/2025/03/06/00/0a5242757a2359109cd06b0ff5e6324cY29udGVudHNlYXJjaGFwaSwxNzQxMjU4NDgw-2.9279134.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2025/03/06/00/0a5242757a2359109cd06b0ff5e6324cY29udGVudHNlYXJjaGFwaSwxNzQxMjU4NDgw-2.9279134.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Experts have predicted that 2025 will be a “buyer’s market” with house hunters having more negotiating power and sales picking up" class="sc-1mc30lb-0 QHifS inline-gallery-btn"/> open picture in gallery

Specialists have predicted that 2025 will likely be a “purchaser’s market” with home hunters having extra negotiating energy and gross sales selecting up (PA Archive) From April 1, stamp obligation prices turned costlier for some home-buyers, with the “nil charge” threshold for first-time consumers lowering from £425,000 to £300,000. Stamp obligation applies in England and Northern Eire.

Jen Lloyd, head of mortgage merchandise at Skipton, stated: “Turning into a home-owner ought to be one of the crucial thrilling milestones in somebody’s life; nevertheless, our analysis reveals that first-time consumers are struggling and really feel the price related to the transfer takes the shine off getting on to the property ladder.

“That’s why right now I'm happy to announce the launch of Skipton Delayed Begin mortgage, giving first-time consumers some respiratory area with no mortgage repayments due for the primary three months.

“We hope that this product will assist first-time consumers settle into their new dwelling and assist ease the pressure of the prices that include shopping for a primary dwelling that transcend the deposit.”

TV property knowledgeable Phil Spencer, who additionally based agency Transfer iQ, stated: “Shopping for your first dwelling is a big milestone however, for a lot of, making the leap from paying lease to managing a mortgage can really feel overwhelming.”