Skipton Building Society said its "industry first" mortgage would help people get out of "trapped rental cycles". As well as no deposit, The Track Record Mortgage will not require a guarantor either.
At the same time, house prices for first time buyers have risen by an average of 18pc in the past two years, an increase of £39,680, it said. Charlotte Harrison, CEO of home financing at Skipton, said: “We need to tackle the UK’s housing affordability crisis to enable more people, especially renters who are trapped in renting cycles, to buy their first home. People trapped in renting is one of the UK’s biggest housing challenges, having a massive impact on the fabric of our society.
"This is why we’re introducing our Track Record Mortgage. It has been carefully created with the challenges generation rent is facing in mind, together with the potential risks and challenges they may encounter in the future too. In building our mortgage product with these challenges at the centre we’re ensuring considerations around negative equity have been fully taken into account.”