The Delayed Start Mortgage

Concerned about your first few months’ payments? Skipton may have the solution

Getting onto the property ladder is hard enough, and it doesn’t end once your offer is accepted. Moving costs and furnishing a home all add up quickly. Recognising this challenge, Skipton Building Society has launched a mortgage product designed to give buyers some breathing room:

Here’s a quick breakdown of what it is and how it works;

What is the Delayed Start Mortgage?

In short, it’s a mortgage that lets you pause your repayments for the first three months after completing on your property. That means you move in without the immediate pressure of a monthly mortgage payment.

Of course, the interest on the loan still accrues during this period, it’s not interest-free. Instead, the unpaid interest is rolled up and added to the total mortgage balance, to be repaid over the remaining term.

Who is a Delayed Start Mortgage for?

Skipton’s Delayed Start Mortgage is aimed at first-time buyers, specifically those who haven’t owned property in the UK or abroad before (including inherited homes).

It’s designed to ease the early financial pressure of homeownership, especially for those transitioning from rental accommodation and juggling moving costs, deposits, and set-up expenses all at once.

You’ll need a minimum 5% deposit, and the mortgage is available at up to 95% loan-to-value. Fixed-rate options are available over two or five years, which helps with budgeting.

How Does The Delay Start Mortgage Work?

• You buy your home and complete as usual
• No mortgage payments are due for the first three months
• Interest is still charged from day one
• That interest is added to the loan balance
• Once the three months are up, your normal repayments begin

Key Things To Consider When Choosing The Delayed Start Mortgage

• It gives financial flexibility at the start, when money is often tight
• It’s not free money, the interest builds up and is repaid over the life of the loan
• Your monthly repayments will be slightly higher to account for that added interest
• It’s not available with Shared Ownership
• It can be combined with Skipton’s Joint borrower sole proprietor scheme, allowing a family member to help with affordability without being on the title deeds

Is The Delay Start Mortgage The Best Option?

That depends on your situation. If you’re moving from rented accommodation and facing a few months of overlap or big upfront costs, deferring mortgage payments could provide much-needed breathing space. It may help you avoid high-interest credit cards or loans, just to manage the transition.

On the other hand, it’s important to understand the long-term impact. Rolling up three months of interest increases your overall borrowing, and the longer your mortgage term, the more that interest can compound.

Final thoughts

Skipton’s Delayed Start Mortgage is a welcome addition to the market. It reflects a growing awareness that affording a home isn’t just about getting a mortgage offer, it’s about managing everything that comes with the move too.

As always, the right mortgage depends on your wider financial picture. If you’re unsure whether a delayed start mortgage is right for you, speak to an adviser who can walk you through the pros and cons based on your own plans.