A new mortgage has been launched aimed at helping renters get a step onto the property ladder.

The deposit-free mortgage has been launched by Skipton Buiding Society and has no need for the financial backing of family or friends. 

The building society shared that the deal does require a 12-month on-time rental payment and good credit history, but there is no need for a guarantor. 

Also known as 100 per cent loans, the mortgage style is the first of its kind since the 2008 financial crisis, according to The Times. 

East London and West Essex Guardian Series:

Deposit-free mortgage to be launched aimed at renters 

Previously, Skinpston's chief executive Stuart Haire had shared that the new mortgage is in a bid to "help those people trapped in rents". 

As he told The Times: "We recognise that ultimately if you are going to end up paying more in rent than you would on a mortgage, that feels like a good mortgage loan."

House prices data shows that in February the average price of a UK home was £288,000, costing buyers £14,400 for a deposit at 5%. 

Although the new mortgage is a step closer to helping renters buy properties, some campaigns think that the lack of affordable homes still remains a key issue. 

As Generation Rent shares a lack of affordable homes makes it very hard for first-time buyers to get a foot on the ladder along with the increasing cost of rent. 

The exact details of the deal have not yet been announced by Skipton.