Deposit-free mortgage launched for renters buying their first home
‘It has been carefully created with the challenges generation rent is facing in mind’
A deposit-free mortgage has been launched by a housing association aimed at renters looking to buy their first home.
Skipton Building Society said it recognised a gap in the market for first-time buyers living in rented properties.
The building society has launched the UK’s first 11% LTV (Loan To Value) mortgage for people who are renting. The 100% mortgage is designed to help renters access the property ladder without a deposit.
The company said it will help take away the dependency on the ‘bank of mum and dad’ or the need for guarantors.
Known as the ‘Track Record Mortgage’, the deal allows residents who can provide evidence of mortgage affordability to borrow up to 100% of a property value.
The scheme is available to people aged 21 or above and is available exclusively to first-time buyer purchases only. It is subject to a credit score and proof of 12 months’ ‘good track record rental history’.
According to Skipton, there are 4.6m households across England, renting privately. This figure has more than doubled (+112 percent) the number recorded in 2000.
Its research found that eight in 10 tenants felt ‘trapped’ in the rental cycle, paying rental costs that are higher than a mortgage — which in turn is preventing them from being able to save for a deposit to buy their own home.
Meanwhile, house prices for first-time buyers have also risen by an average of 18% in the last two years – an increase of £39,680 – with more than one in three (35%) struggling to save due to increased rent.
Charlotte Harrison, CEO of Home Financing at Skipton, said: “We need to tackle the UK’s housing affordability crisis to enable more people, especially renters who are trapped in renting cycles, to buy their first home.
“People trapped in renting is one of the UK’s biggest housing challenges, having a massive impact on the fabric of our society.
“With escalating rents and the cost-of-living squeeze further impacting people’s ability to save for a house deposit — it’s making it almost impossible for people to get onto the property ladder.
“We recognise there’s a clear gap in the market for people who have a strong history of making rental payments over a period of time and can evidence affordability of a mortgage – but there is currently no solution for them to buy a property due to lack of savings or access to family wealth.
“It is time for a re-think on these massive barriers to home ownership, and we’re proud to take the lead on bringing to the market, solutions for such a massive social problem.
“This is why we’re introducing our Track Record Mortgage. It has been carefully created with the challenges generation rent is facing in mind, together with the potential risks and challenges they may encounter in the future too.
“In building our mortgage product with these challenges at the centre, we’re ensuring considerations around negative equity have been fully taken into account.”
However, the campaign group Generation Rent has warned that while the deal could help first-time buyers, the lack of affordable houses is also a huge obstacle preventing prospective buyers trying to get onto the property ladder.
The group, which campaigns for the rights of private renters, said the shortage of budget-friendly properties for first-time buyers is still a huge issue.
Will Barber Taylor from the group told the BBC: “It’s not necessarily going to help all the people who are looking to buy a first-time home if there aren’t more houses available to buy.”
But, he added: “It would need to be in combination with other factors to make it effective.”
Coronation Street legend Julie Goodyear diagnosed with dementia
Coronation Street legend Julie Goodyear, who played Bet Lynch, has been diagnosed with dementia, her husband has revealed.
The 81-year-old who played the iconic pub landlady of the Rovers Return on the show sought medical advice after ‘suffering forgetfulness’ but there was now ‘no hope of a reversal in the situation’, her husband Scott Brand said.
He shared news of her diagnosis in a statement, writing: “My darling wife and I have had to come to terms with this heart-breaking diagnosis.
“Unfortunately, Julie has been suffering forgetfulness for some time and we have been seeking medical advice and assistance, but we now know that there is no hope of a reversal in the situation — and that her condition will get progressively, and perhaps speedily, worse.
“We have taken the decision to publicly announce the diagnosis as Julie still loves visiting friends and eating out.
“Inevitably she is recognised, and fans love to meet her – and she them – but she can get confused particularly if she is tired. I hope people will understand.”
Goodyear played the leopard-skin-wearing, big-haired barmaid on the cobbles from 1966 to 2003.
Thanks to Goodyear, Bet Lynch became one of the ITV soap opera’s longest-serving and best-loved characters.
The iconic actress also appeared on reality shows such as Celebrity Big Brother and Celebrity Fit Club.
Tragedy as police find body of missing man last seen leaving pub
Police have confirmed the body as being Christopher
Police have confirmed a body has been tragically found in the search for a missing man in Marple.
Christopher Barlow, 31, was last seen shortly after 1am on Sunday, June 4th after leaving the Royal Oak pub in Mellor, Stockport.
He was last sighted turning left to walk along Brabyns Brow from Town Street.
Police officers and specialist teams searched a specific area beside the Peak Forest and remained at the scene after the tragic discovery on Tuesday, June 6th.
Greater Manchester Police have confirmed the body as being Christopher, and his family have been informed. A report is currently being prepared for the Coroner’s Office.
Detective Superintendent Helen Critchley, of GMP’s Stockport district, said: “Firstly, our thoughts are with Chris’s family and friends at this very distressing time.
“I would also like to thank the local community for their support with the search and the wider public for their assistance in sharing our appeal.”
According to The Manchester Evening News, on Monday evening (June 5th) the water search and marine unit, as well as a number of police vehicles and detectives were at the scene.
A large section of the canal was closed off to boats the next day as the search for Christopher continued.
Canal towpaths were also taped off as divers went into the water and officers searched nearby woodland.
Man to complete visiting every Wetherspoon pub in Britain and Ireland this week
Now he only has one final pub left to visit
A man will complete his visit to every Wetherspoon pub in Britain and Ireland this week as he sips his final pint to conclude his mission.
Most people like to see how far they can make it in a pub crawl but David Bingham, 60, decided to take it much further than that.
The Derbyshire man, who set out on the task in 2019, will conclude his journey of sipping a pint at all 875 Wetherspoon venues this week, including the 40 that have closed.
Now he only has one final pub left to visit, and he’s booked a flight at the South Terminal in Gatwick Airport in order to tick it off his long list.
The last of the boozers will be The Flying Horse, which is conveniently located right after security at the airport. Wetherspoons has praised his dedication.
Mr Bingham, from West Hallam, has said his other passions are trainspotting and following Burton Albion. He took on the challenge while also pursuing his other hobbies. Mr Bingham told the BBC: “If we were going somewhere new, I’d suss out the Wetherspoons.”
His partner Una Cooper bought him a directory of the pubs and he began ticking them off. “I’ve had a drink in most pubs, I’d say 85%,” he said.
“I’m a lager lad, definitely. The one in Ramsgate [in the Royal Victoria Pavilion] is my favourite because the history behind that building is incredible.
“But there are five police stations, there are churches, there’s chapels, there’s a tram depot, there’s a fire station.
“They just save these fantastic buildings. I love architecture and I love buildings. It’s a history lesson.”
Wetherspoon spokesman, Eddie Gershon, said: “We applaud David Bingham on his outstanding achievement.
“Many people love to visit Wetherspoon pubs across the UK and Ireland, but only a handful have visited each and every one. David will now join that select group.
“He has obviously put in a lot of time and effort into achieving his goal and we thank him for his dedication to our pubs.”