First-time buyer mortgage with no repayments for first three months unveiled

A mortgage enabling first-time buyers to put off making 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.

The society pointed to research carried out by OnePoll in April 2025 among 1,000 people who had bought their first home in the past five years, which found seven in 10 (71%) said the moving process cost significantly more than they had expected and nearly two-thirds (63%) felt financially strained.

Skipton’s research indicated that first-time buyers spend nearly £3,500 on average on furniture to kit out their homes, as well as £2,600 typically on kitchen appliances and £1,700 on removal companies.

On average, first-time buyers said it took them eight months to recover financially from the costs of moving.

Just over a third (35%) of first-time buyers were juggling costs for two properties for a while, because their rental agreement overlapped with moving in.

Skipton’s new mortgages may help take the sting out of paying extra stamp duty costs for some aspiring home-owners.

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.”