Saffron Green, at 22, and her husband Reece, 24, have purchased their first home, a three-bedroom semi-detached house in Pontefract, near Leeds, utilizing a 100% mortgage. This achievement comes at an age when many peers are still living with parents, as the average age for first-time buyers in England is now estimated to be 34.
Green attributes her early homeownership to a decision to forgo university and enter the workforce at a young age. "I have always been a grafter like my mum and dad," she stated, having worked full-time since 16 in various roles including retail and as cabin crew. She noted that a degree does not guarantee high-paying employment, unlike direct entry into jobs.
The couple's ability to buy without a deposit was facilitated by Skipton Building Society's Track Record Mortgage, launched in May 2023. This product is designed for renters who can demonstrate a history of timely rent payments and the capacity to afford mortgage payments. While the scheme allows borrowing up to 150% of monthly rent, it is capped at 4.49 times gross annual income, with a maximum mortgage of £600,000.
Green and her husband spent over 18 months renting, finding it difficult to save for a deposit while covering rent, bills, and other expenses. A significant unexpected cost, an £800 vet bill for their dog, depleted their savings. After discovering the 100% mortgage option, they were able to proceed with purchasing a £156,000 home in March of this year, despite having only £600 in the bank at the time they began looking.
Their new home is an upgrade from their previous rental, featuring a drive and conservatory. The monthly mortgage payment of £782 is less than their previous rent of £875, which was set to increase to £950. They are also able to overpay their mortgage by £18 each month. Green mentioned that her father had cautioned against buying due to high mortgage rates, but she is content with their decision as rates have since risen further.
Homeownership has presented unexpected challenges, including repair costs not identified in the initial survey. The couple is undertaking renovations, doing some work themselves and hiring specialists for others, with help from Green's father. They anticipate their renovation period may extend longer than their initial five-year plan.
Experts, such as Ravesh Patel, director and senior mortgage consultant at Reside Mortgages, advise that buyers using 100% mortgages should have a clear plan to reduce their loan balance through overpayments, which may require lifestyle adjustments. He also emphasized that relying solely on future property value appreciation for equity is risky, especially in the early years of homeownership, as it increases the risk of negative equity if property values decline.