NEW ZERO DEPOSIT MORTGAGE LAUNCHED FOR RENTERS ASPIRING TO BE HOMEOWNERS

Tuesday May 9, 2023

Auckland Estates is excited to share the latest news in the UK housing market, which could provide hope to those struggling to get onto the property ladder. According to Charlotte Harrison, Chief Executive of Home Financing at Skipton, it is time to tackle the UK’s housing affordability crisis, especially for renters who feel trapped in renting cycles. She believes that this is one of the biggest housing challenges in the UK, with a massive impact on the fabric of society.

In response to this crisis, Skipton has created a mortgage that has been carefully designed with the challenges faced by Generation Rent in mind, as well as the potential risks and challenges they may encounter in the future. The aim is to enable more people to buy their first home and help those who feel trapped in renting cycles to break free.

The escalating rents and the cost-of-living squeeze are further impacting people’s ability to save for a house deposit, making it almost impossible for them to get onto the property ladder. Skipton’s innovative mortgage aims to tackle these massive barriers to home ownership by providing an affordable option for those who are struggling.

The property website Rightmove has recently calculated that first-time buyers with a 15% deposit face paying nearly £200 per month more for a mortgage than they did a year ago. Those in the 15% deposit bracket would pay an average of about £1,056 per month, compared with £865 last year, due to mortgage rates and house prices rising.

However, Skipton’s new mortgage product could offer a more affordable option for first-time buyers, enabling them to take the first step onto the property ladder. This could have a positive impact on society as a whole, as more people are able to own their own homes, rather than being trapped in renting cycles.

In conclusion, Auckland Estates is thrilled to see innovative solutions being developed to tackle the UK’s housing affordability crisis. We hope that more lenders and providers will follow Skipton’s lead, and provide affordable options for those who are struggling to get onto the property ladder. This could help to create a brighter future for those who feel trapped in renting cycles and have a positive impact on society as a whole.