Skipton Building Society revealed its newly launched no-deposit mortgage has attracted around 500 borrowers, totalling around £62 million.
Called "Track Record", the building society’s 100% mortgage was introduced in May after Stuart Haire, a former HSBC banker, took charge of the lender in December 2022.
It aims to help those seeking to get onto the housing ladder but have little to no cash savings.
So far, 484 applications have been made, reaching £62 million.
Haire says he’s aware the scheme is in its infancy but revealed that no arrears had cropped up and it was being well regarded by the overall marketplace.
It comes as the government is expected to launch a scheme in next week’s budget involving support for 99% mortgages, aimed at freeing Brits who are “rental prisoners”.
Typical mortgages require at least 5% of the house value to be paid upfront, with the increase in deposit amounts creeping higher after the global financial crash when Northern Rock collapsed, having at one point offered 125% mortgages.
Skipton reported an 8% rise in pre-tax profits, reaching £333.4 million, while also marking a 6% increase in new mortgages, totalling £6.7 billion.
Despite these gains, Skipton's Connells estate agency division saw pre-tax profits plummet from £67.5 million to £13.8 million, a symptom of the decrease in home sales.