Launching in May 2025, the mortgage will give new borrowers three months of breathing space before their repayments begin, so they can get on their feet when they buy their home.
Now Skipton has made changes so buyers can choose between a one, two or three month grace period before their first refund is due.
And as an added bonus, the building society is also expanding its availability so it can be used with the 100% Track Record Mortgage. This is the deal that allows first-time buyers with a good history of rent payments to get a down payment-free mortgage.
Borrowers could therefore – subject to approval – take advantage of the Track Record mortgage and defer their first repayment by up to three months.
The Deferred Start Mortgage can now also be used with Shared Ownership Mortgages. Shared ownership involves buyers purchasing a percentage of a property and renting out the rest.
The inspiration behind the Delayed Start mortgage came from research by Skipton, which found that first-time buyers spend up to £30,000 in the first three months after moving on furniture, appliances and moving costs. These costs can be overlooked and can also cause severe financial strain.
Feedback from delayed start customers has since shown that some took just one or two months to get settled. That’s why Skipton has offered the extra flexibility of one or two months of breathing space.
Jen Lloyd, head of mortgage products at Skipton, said: “Buying your first home should be an exciting milestone, but for many the financial pressures of moving can be overwhelming.
“That’s why we’re pleased to enhance our Delayed Start Mortgage, to give buyers more choice, flexibility and breathing space when they need it most.”
Meanwhile, Andrew Montlake, CEO of Coreco Mortgage Brokers, said the changes gave buyers much more choice and control at a point where costs can quickly add up.
He added: “As always, this will not be suitable for everyone and borrowers should seek professional advice to understand how this fits into their circumstances, but it is encouraging to see lenders continuing to innovate.
“If we want to support the next generation in the housing market, more products like this, rooted in real credit behavior, should be welcomed.”