What is a first-time buyer?

A first-time buyer is someone who has never owned a residential property in the UK or abroad. This includes inherited properties or Buy-to-Let investments, even if you never lived in them.

How can Skipton help me buy my first home?

We offer a range of first-time buyer mortgages designed to help you get onto the property ladder, including:

• £250 cashback for eligible members with a Skipton Lifetime ISA.

• Up to 5.5x loan-to-income ratio.

• Up to 40-year mortgage terms.

• Income Booster to help you borrow more.

• Free standard valuation for mortgage purposes.

• No completion fees on selected products.

• Up to 95% loan-to-value, including new build houses and flats.

• Fixed rate mortgage products.

• Discounted home surveys via Connells.

• Delayed Start mortgages – no repayments for the first three months.

Note: Mortgage valuations and home surveys are not regulated by the Financial Conduct Authority. You could lose your home if you don’t keep up your mortgage repayments.

How do I get started?

1. Quick affordability check: Estimate how much you might be able to borrow. This won’t affect your credit score.

2. Find a mortgage product: Use our mortgage finder to explore products suitable for first-time buyers.

3. Mortgage Decision in Principle (DIP): A full affordability check to see how much you could borrow. Many estate agents require this before making an offer.

How much deposit do I need?

• Minimum deposit: Usually 5% of the property value.

• Example: For a £267,500 home, a 5% deposit is about £13,000; a 10% deposit is nearly £27,000.

• Track Record mortgages: If you are currently renting, you may qualify for a mortgage with less than 5% or no deposit, provided you meet our rent payment criteria.

Can I use a gifted deposit?

Yes, family members can gift all or part of your deposit. The donor must be 18+, not living in the property, and sign a gifted deposit declaration.

Can a Lifetime ISA help me save for a deposit?

Yes – you can save up to £4,000 a year and receive a 25% government bonus. Money can be used to buy your first home after 12 months from your first payment. Withdrawals before age 60 may incur a 25% charge.

Fixed vs Variable Rate Mortgages

• Fixed rate: Interest stays the same for 2–10 years, providing payment stability.

• Variable rate: Repayments can rise or fall with interest rates, influenced by the economy or lender decisions.

What’s the difference between a mortgage valuation and a home survey?

• Mortgage valuation: Confirms the property’s value for lending purposes.

• Home survey: Checks the property’s condition for faults before you buy.

What is a Track Record mortgage?

A mortgage for renters with little or no deposit, using your rental payment history to determine borrowing potential.

Key features:

• Fixed interest rate for 5 years.

• No deposit required.

• No completion fees.

Eligibility:

• Aged 21+

• No property ownership in the UK for the last 3 years

• Up to £600,000 borrowing

• No missed payments in last 6 months

• Proof of rent payments for 12 months in a row within the last 18 months (for sole or joint applicants)

• Not available for properties in Northern Ireland

You could lose your home if you don’t keep up your mortgage repayments.

Extra Support for First-Time Buyers

• Income Booster: Add up to 3 extra people to boost borrowing without them being owners.

• Government schemes: Explore support programs to help get on the property ladder.

• Delayed Start mortgages: Delay repayments for the first three months.

What is a first-time buyer?

A first-time buyer is someone who has never owned a residential property in the UK or abroad. This includes inherited properties or Buy-to-Let investments, even if you never lived in them.

How can Skipton help me buy my first home?

We offer a range of first-time buyer mortgages designed to help you get onto the property ladder, including:

• £250 cashback for eligible members with a Skipton Lifetime ISA.

• Up to 5.5x loan-to-income ratio.

• Up to 40-year mortgage terms.

• Income Booster to help you borrow more.

• Free standard valuation for mortgage purposes.

• No completion fees on selected products.

• Up to 95% loan-to-value, including new build houses and flats.

• Fixed rate mortgage products.

• Discounted home surveys via Connells.

• Delayed Start mortgages – no repayments for the first three months.

Note: Mortgage valuations and home surveys are not regulated by the Financial Conduct Authority. You could lose your home if you don’t keep up your mortgage repayments.

How do I get started?

1. Quick affordability check: Estimate how much you might be able to borrow. This won’t affect your credit score.

2. Find a mortgage product: Use our mortgage finder to explore products suitable for first-time buyers.

3. Mortgage Decision in Principle (DIP): See below for details.

What is a DIP?

A Decision in Principle (DIP), also called an Agreement in Principle (AIP) or mortgage in principle, is a way of showing how much you may be able to borrow. Many estate agents or sellers request it to demonstrate your ability to get a mortgage.

A DIP is for illustrative purposes only. It does not guarantee mortgage approval or that a specific product will be available to you.

Steps to Getting a DIP

Step 1: Use our Affordability Calculator

• Quick 5-minute check of what you might borrow based on your income and outgoings.

• We carry out a soft credit check – this does not affect your credit score.

• You’ll get a clear summary of your potential borrowing.

What you'll need to provide:

• Income: Salary, bonuses, overtime, benefits, or self-employed accounts/limited company dividends. Contractors should quote annual salary as daily rate × 5 × 48 weeks.

• Outgoings: Loans, credit cards, existing mortgage payments, regular spending.

Step 2: Request your Decision in Principle

• After your affordability check, you can request a DIP within 30 days.

• If not done immediately, we will email you a link to complete your DIP within 30 days. Ensure your email and mobile number are provided.

Step 3: Apply for a mortgage

• Once your DIP is accepted, you have 30 days to submit a full mortgage application without repeating the DIP.

You could lose your home if you don’t keep up your mortgage repayments.

Affordability FAQs

What is an affordability calculation?
It estimates how much you could afford to repay on a mortgage based on your income and outgoings. It is for guidance only and does not guarantee mortgage approval.

Why do I need to do an affordability calculation before a DIP?
The calculation provides the financial information required to complete your DIP.

How long does my affordability calculation last?
You have 30 days to request a DIP after completing the calculation. After this, the process needs to be restarted.

Does a DIP involve a soft or hard credit search?

• A DIP uses a soft credit check that does not affect your credit score.

• A full mortgage application triggers a hard credit check, leaving a footprint on your record.

How long is a DIP valid?
You have 30 days to submit a full mortgage application from the date your DIP is issued.

Does having a DIP guarantee a mortgage?
No. A DIP is for illustrative purposes only. It shows you may be able to borrow but does not guarantee mortgage approval.

Extra Support for First-Time Buyers

• Income Booster: Add up to 3 extra people to boost borrowing without them being owners.

• Government schemes: Explore support programs to help get on the property ladder.

• Delayed Start mortgages: Delay repayments for the first three months.