Skipton Building Society is rolling out a mortgage product designed to support first-time buyers by allowing them a three-month grace period with no repayments required, offering "breathing space" amidst the various costs of purchasing their initial home.
However, it's important for buyers to note that interest begins accruing from the very first day and will be added onto the total mortgage balance.
The 'Delayed Start Mortgage' deals are accessible to individuals boasting a minimum deposit of 5%, with at least one party on the mortgage being a first-time buyer.
The deals include a two-year fixed-rate at 4.87% for those with a 10% deposit, a two-year fixed-rate at 5.20% for borrowers with a 5% deposit, a five-year fixed-rate deal at 4.78% for those with a 10% deposit, and a five-year fix at 5.00% for those with a 5% deposit.
Moreover, the building society offers specialised two-year New Build mortgages at 5.40% and five-year New Build fixes at 5.20% for those who can afford a 5% deposit. All these options come without any added fees.
Referencing a study by OnePoll conducted in April 2025 involving 1,000 individuals who acquired their first homes within the past five years, Skipton highlights that 71% faced moving expenses surpassing their projections, while 63% reported feeling financial pressure during the move.
Skipton's study has revealed that first-time homebuyers are forking out an average of nearly £3,500 on furniture, around £2,600 on kitchen appliances, and about £1,700 to removal firms when setting up their new digs.
It typically takes these new homeowners a good eight months to financially bounce back from the hefty costs associated with moving house.
A significant chunk of them, over one-third (35%), found themselves footing bills for two properties simultaneously due to rental agreements overlapping with their move-in dates.
In a bid to ease the burden of additional stamp duty fees for some hopeful property owners, Skipton has introduced new mortgage options.
From April 1, stamp duty costs became more expensive for some home-buyers, with the "nil rate" threshold for first-time buyers reducing from £425,000 to £300,000. Stamp duty applies in England and Northern Ireland.
Jen Lloyd, head of mortgage products at Skipton, said: "Becoming a home-owner should be one of the most exciting milestones in someone's life; however, our research shows that first-time buyers are struggling and feel the cost associated with the move takes the shine off getting on to the property ladder.
"That's why today I am pleased to announce the launch of Skipton Delayed Start mortgage, giving first-time buyers some breathing space with no mortgage repayments due for the first three months.
"We hope that this product will help first-time buyers settle into their new home and help ease the strain of the costs that come with buying a first home that go beyond the deposit."
TV property expert Phil Spencer, who also founded firm Move iQ, said: "Buying your first home is a huge milestone but, for many, making the leap from paying rent to managing a mortgage can feel overwhelming."
