The product allows borrowers to delay their first mortgage payment for up to three months, enabling first-time buyers to manage the cost of purchasing a home.
The Delayed Start product was launched in May last year and has attracted £200m in applications so far.
Skipton Building Society said most of the demand for the product was coming from the South East, followed by the North West, the East of England, the East Midlands and Scotland.
Research from the mutual showed that first-time buyers spent as much as £30,000 in the first three months after moving, and 63% felt financially strained, while 71% said the process was more costly than expected.
The mutual said renters were the “core audience” for the proposition, as many found that their costs overlapped when transitioning from renting to owning, particularly when tenancy end dates do not align with the start of mortgage payments.
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Skipton Building Society’s Track Record product allows renters to get onto the housing ladder with no deposit and use their rental payment history to demonstrate affordability.
Practical solutions for first-time buyers
Jen Lloyd, head of mortgage products at Skipton Building Society, said: “Buying your first home should be an exciting milestone, but for many, the financial pressures of moving can feel overwhelming. That’s why we are pleased to enhance our Delayed Start Mortgage to give buyers more choice, flexibility, and breathing space when they need it most.
“We believe it’s only fair to offer options that reflect people’s unique circumstances, because no two home buying journeys are the same. Whether it’s delaying repayments for one, two, or three months, or combining this feature with our 100% Track Record Mortgage or shared ownership options, we’re committed to helping buyers manage those upfront costs and settle into their new home.”
Andrew Montlake, CEO of Coreco, said the mutual showed it was prepared to listen to the “real financial pressures” faced by first-time buyers with “practical, well-thought-out solutions”.
Montlake added: “For many first-time buyers, overlapping rent, moving costs and furnishing a new home can be as much of a challenge as the mortgage itself. The ability to delay repayments, even briefly, can make a real difference in easing that early pressure. Combined with the Track Record mortgage, this goes a step further by helping renters buy without a deposit while giving them vital breathing room when rental payments overlap, as they so often do.”
