The building society hopes the new product will offer first-time buyers “the breathing space they need in those critical first few months”.
In the latest move to support cash-strapped first-time buyers, Skipton BS has today launched a ‘one-of-a-kind’ mortgage product which comes with no repayments for the first three months.
It follows research conducted by the building society revealing those who joined the property ladder in the past five years spent upwards of £30,000 within the first three months of moving into their new home - leading 63% to feel financially strained.
“Becoming a homeowner should be one of the most exciting milestones in someone’s life, however, our research shows that first-time buyers are struggling and feel the cost associated with the move takes the shine off getting onto the property ladder,” explained Jen Lloyd, Head of Mortgage Products at Skipton BS.
Its solution, the new ‘Delayed Start Mortgage’, aims to “give first-time buyers a fair start in their new home, and the breathing space they need in those critical first few months”, Lloyd added.
Exclusively available to first-time buyers*, deals within Skipton BS’s new Delayed Start Mortgage range can finance up to 95% of your new home at a fixed rate of interest for either two or five years and include a free valuation as an incentive. However, they differ from other products currently on the market in that you won’t need to make repayments for the first three months after completion.
Last updated: 07/05/2025
Rate: 4.87% fixed until 31 August 2027 before reverting to 5.99%
Initial period: 2 years
Product fee: N/A
Maximum loan-to-value: 90%
APRC: 6.2%
Representative example: £200,000 mortgage over 25 years initially at 4.87% fixed for 27 months reverting to 5.99% variable for 36 months and 6.54% variable for term. 27 monthly payments of £1154.08, 36 monthly payments of £1277.86 and 237 monthly payments of £1334.56. Total amount payable £393,558.84 includes loan amount, interest of £193,454, valuation fees of £0 and product fees of £0. The overall cost for comparison is 6.2% APRC representative.
Rate: 5.20% fixed until 31 August 2027 before reverting to 5.99%
Initial period: 2 years
Product fee: N/A
Maximum loan-to-value: 95%
APRC: 6.3%
Representative example: £200,000 mortgage over 25 years initially at 5.20% fixed for 27 months reverting to 5.99% variable for 36 months and 6.54% variable for term. 27 monthly payments of £1192.60, 36 monthly payments of £1280.79 and 237 monthly payments of £1337.62. Total amount payable £395,429.58 includes loan amount, interest of £195,325, valuation fees of £0 and product fees of £0. The overall cost for comparison is 6.3% APRC representative.
Rate: 4.78% fixed until 31 August 2030 before reverting to 6.54%
Initial period: 5 years
Product fee: N/A
Maximum loan-to-value: 90%
APRC: 5.9%
Representative example: £200,000 mortgage over 25 years initially at 4.78% fixed for 63 months reverting to 6.54% variable for term. 63 monthly payments of £1143.69 and 237 monthly payments of £1318.49. Total amount payable £384,639.60 includes loan amount, interest of £184,535, valuation fees of £0 and product fees of £0. The overall cost for comparison is 5.9% APRC representative.
Rate: 5.00% fixed until 31 August 2030 before reverting to 6.54%
Initial period: 5 years
Product fee: N/A
Maximum loan-to-value: 95%
APRC: 6.0%
Representative example: £200,000 mortgage over 25 years initially at 5.00% fixed for 63 months reverting to 6.54% variable for term. 63 monthly payments of £1169.18 and 237 monthly payments of £1323.42. Total amount payable £387,413.88 includes loan amount, interest of £187,309, valuation fees of £0 and product fees of £0. The overall cost for comparison is 6.0% APRC representative.
“Upfront costs are the burden of every first homeowner, as removal fees, white goods and other furnishings can add up substantially,” said Rachel Springall, Finance Expert at Moneyfactscompare.co.uk. She added that delaying mortgage repayments could therefore be a “lifeline for new buyers”.
But, while these deals could alleviate financial stress in the short-term, your mortgage will still accumulate interest from day one. As a result, you’ll be faced with higher monthly repayments and will pay more interest over the term than if you started repaying the debt from the first month.
Because of this, Springall stressed “it is imperative borrowers seek independent advice to ensure they compare deals and understand how delayed repayments work”.
After a number of high street lenders made significant cuts over recent weeks, first-time buyers with a 10% deposit will find the lowest two- and five-year fixed mortgage rates now from HSBC, with deals charging a respective 4.54% and 4.39%.
Meanwhile, Monmouthshire BS currently offers the lowest two- and five-year fixed rates to those with a smaller, 5% deposit; its deals charge 4.85% and 4.75% respectively, the latter of which earns a place on our Moneyfacts Best Buy chart based on its overall true cost.
Our mortgage charts are regularly updated throughout the day to display the lowest mortgage rates currently available.
Alternatively, be sure to read our weekly mortgage roundup for more information on the lowest-priced deals, as well as some Moneyfacts Best Buy options.
That being said, the lowest-priced deal may not be the most cost-effective depending on your circumstances, and it’s important to consider other factors such as product fees and incentives before settling on a mortgage.
While this new product from Skipton BS joins a host from other lenders in supporting first-time buyers onto the property ladder, Springall suggests a “rigorous savings plan can make a huge difference” to those who feel their dream of homeownership is still too far out of reach.
Related guide: How to save for your first home
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*At least one applicant must be a first-time buyer
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