The product, which will be launched in 2025, has already seen huge demand, attracting orders worth £419 million.
It works by allowing customers who buy their first home through Skipton to delay their first mortgage payment by one, two or three months.
The building society, which is the only lender on the market currently offering this service, said its aim in creating Deferred Start was to give buyers the opportunity to use their income to create their first homes before mortgage repayments begin. Some buyers may use the payment period to cover legal fees or removal costs.
Although this expansion was previously available to first-time buyers, it now means it will support those taking their next step on the property ladder.
Skipton said she has demonstrated her commitment to helping people overcome affordability challenges throughout their homeownership journey, recognizing that the financial stresses associated with moving to another home do not end once a buyer receives a mortgage offer.
The product is also available alongside Income Booster (JBSP), New Build and Shared Ownership applications and can be used with Skipton’s Track Record Mortgage, subject to eligibility criteria.
Jane Lloyd, Head of Mortgage Products at Skipton Building Society, said: “Moving from one home to another can be an exciting and expensive affair. While the mortgage is often the focus, many of the financial pressures come from everything that happens around the moving process itself, from furnishing the property and carrying out improvements to managing the costs involved as families move from one home to another.
“The strength of customer demand for Deferred Start has reinforced what we have long believed: increased flexibility can make a meaningful difference at key moments in the homebuying journey. That’s why we made the decision to expand the offering beyond first-time buyers and make it available to more home movers.”
Cost of buying a home – first three months
Skipton research previously found that first-time buyers spent more than £30,000 in the first three months after moving in, with furniture, appliances, decor and removal among the biggest expenses.
For many, the stress is heightened by overlapping rents, leaving them to manage last month’s rent at the same time as the first mortgage payment. The findings underscore the importance of providing flexibility and breathing room during an expensive move to a new home.
The strongest demand for Delayed Start since launch has come from the South East, followed by Greater London, the East of England and the West Midlands.
