Delayed Start to repayments

First-time buyer mortgage with nothing to pay back for first three months unveiled

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A mortgage enabling first-time buyers to put offmaking any repayments for the first three months has been unveiled by Skipton Building Society.

The Delayed Start Mortgage deals will give people "breathing space" to juggle the extra costs associated with buying a first home, the society said.

However, buyers should also bear in mind that, while no repayments will be due for the first three months, interest will still start to build up from day one and will be added to the overall mortgage balance.

People with deposits as low as 5% can potentially take out deals and at least one applicant on the mortgage must be 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.

There is also a two-year New Build mortgage at 5.40% for borrowers with a 5% deposit and a five-year New Build deal at 5.20% for those with a 5% deposit. The deals are fee-free, Skipton said.