New Delayed Start mortgage gives first-time buyers breathing room amid rising costs
This article was produced in partnership with Skipton Building Society
Skipton Building Society is once again stepping up for first-time buyers (FTBs) with the launch of its Delayed Start mortgage. It adds to a growing suite of innovative solutions designed to tackle persistent affordability challenges in the current market.
Launching at the start of May, Delayed Start offers buyers a crucial grace period after completion of the mortgage. There are no repayments due for the first three months, (although interest does still accrue from day one) - during one of the most financially challenging times of homeownership. The move responds to Skipton’s latest research which revealed the hidden financial toll many FTBs face after collecting the keys.
“We found 43% of first-time buyers struggle with their first mortgage payment because of other costs — kitchen appliances, furniture, solicitor’s fees, you name it — and on average it takes eight months to recover financially,” explained Lucy Lewis, National Account and First Time Buyer Lead at Skipton. “Just over 60% said that blow took the shine off getting on the property ladder.”
Innovation at Skipton
Skipton is no stranger to innovative lending. As Lewis put it, “we’re constantly learning and reviewing what we’ve got; that’s the exciting place we’re in. Our product team always asks, ‘What else can we do? What cohorts are underserved? How can we help more people?’”
Delayed Start is the latest answer to those questions. It joins the likes of Income Booster (which can be used in tandem with Delayed Start) and the first-of-its-kind product, Track Record. Track Record is available to buyers aged 21 or over and assesses affordability based on a history of rent payments made in full and on time. It was first launched in 2023 and is a great example of how Skipton is always game to improve its offerings.
Track Record
Skipton was initially tighter with its Track Record lending criteria: it had to be a first-time buyer and the mortgage payment couldn’t exceed the rent amount, for example. But over time, as more cases and feedback from brokers and borrowers rolled in, the team reassessed and made some well-received tweaks.
“We were the first to do anything like this and responsible lending is first and foremost,” Lewis explained. “But we were able to make changes that make quite a difference to people. We now allow those who haven’t owned property in the last three years to utilise the product. Plus, we’ve extended the maximum term to 40 years and increased the max borrowing to 120% of the rent paid.”
This is responsive to the fact that the industry’s traditional models don’t always reflect the reality of today’s FTBs. Society has changed, with people buying their homes later and renting longer. The crash in 2008 brought in a wave of regulation, and while it was needed, it also added constraints. Now there’s the cost-of-living crisis as well, and lenders — especially those like Skipton, who are unafraid to do things differently — are keen to be more agile.
The power of choice and the role of advice
Brokers play a central role in matching individuals with the right solutions — and Skipton sees Delayed Start as one more tool in a broker’s arsenal to help would-be home buyers over the line. Everybody is individual, whether they’re self-employed, contractors, people getting deposits from family, or interested in different types of properties. It’s important to arm brokers with options, so they can pull out what suits any one buyer’s needs.
To that end, brokers want access to products that meet the needs of as many of the people that come through their doors as possible — resulting in a growing pressure for lenders to think outside the box. While other lenders may eventually follow suit, Skipton is proud to be at the forefront and lead by example.
“Brokers are right to represent their customers by challenging us to do more, and we’re answering that call,” Lewis said. She adds that Skipton Group’s estate agency and surveying sides give them a bird’s-eye view of the housing journey. This allows them to not only respond with products, but to advocate at a higher level. Skipton is continuously lobbying government for change, backed by robust data.
“We’re known for our insights, innovating, and not being afraid to do things differently,” she said. “That’s what makes Skipton such a brilliant place to work.”
Helping people into homes: Skipton’s driving purpose
When asked why Skipton is so deeply committed to FTBs and alleviating their pain points, Lewis has a clear answer: “Helping people into homes is our driving purpose.”
“When someone buys their first home, it allows someone else to move into their second,” she explained. “It keeps the whole market moving. This isn’t just about first-time buyers — it’s about the whole housing ecosystem.”
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