Lenders are expected to start offering 100% mortgages for the first time since the global financial crisis in 2008.

Skipton Building Society is planning to launch a loan for first-time buyers who do not have a deposit in a move that could start a trend in the mortgage sector.

Skipton’s new 100% mortgage product aims to help more people get a foot on the housing ladder and boost activity in the housing market.

Stuart Haire, chief executive of Skipton Building Society, said he wanted to “help those trapped in rents”.

Although the precise details of the loan have not yet been released, the deal is expected to be fixed for two years, and borrowers will almost certainly be required to demonstrate a history of paying rent at a similar level to a mortgage repayment for up to two years.

Haire told The Times that Skipton was trying to find a way around the roadblock faced by first-time buyers who regularly paid rent but cannot get a mortgage due to being unable to save up for a 5%.

But some analysts have warned the return of a 100% will leave borrowers at greater risk of negative equity if the value of their home falls.

Prior to the 2008 financial crash, all large lenders including Lloyds and HSBC offered no-deposit mortgages.

These loans were banished from the market following the crisis amid a crackdown on risky lending.

But the lack of affordable mortgage options for first-time buyers has increased their appeal amid concern in the government that its plans to increase homeownership are at risk.

In an effort to boost purchasing power the government might be considering a revival of the Help to Buy scheme, which offered first-time buyers loans for newly-built homes.

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