When Skipton, one of Britain’s biggest building societies, launched the UK’s first 100% mortgage exclusively for renters last month, reactions varied wildly. While some commentators regard the first-of-its-kind home loan as a “revolutionary” way to get people out of the rental trap and on to the property ladder, others have likened it to the risky loans that contributed to the 2007-08 financial crash.
Skipton’s move appears particularly daring considering its timing: a mere couple of weeks after the mortgage was launched, UK banks and building societies pulled almost 800 residential and buy-to-let mortgage deals in a matter of days, amid growing concerns over future interest rate rises.
