It introduces shared ownership track record mortgage
Skipton Building Society has expanded its track record mortgage, the UK’s first 100% mortgage product specifically for renters, with new policy enhancements and the introduction of a shared ownership track record mortgage.
Starting today (September 2), the track record mortgage will feature an increased maximum term of 40 years, up from 35, and will now be available for new build flats. In addition, the mutual has introduced a more flexible underwriting approach, allowing applicants without rental experience to qualify if a co-applicant meets all eligibility criteria.
The updated policy also includes relaxed rent-to-monthly mortgage payment criteria, with the possibility of loans reaching up to 120% of the applicant’s current rent.
In conjunction with these changes, Skipton has launched the shared ownership track record mortgage, which offers a fixed rate of 5.60% for five years. The product allows borrowers to purchase a share of a property, typically between 25% and 75%, while renting the remaining portion from a housing association or registered landlord at a below-market rate. It is designed for those who meet both the shared ownership and track record mortgage criteria.
Since its initial launch, Skipton’s track record mortgage has generated over £122 million in applications, primarily from renters across the UK, with Scotland seeing the highest number of applications. The product, initially targeted at first-time buyers, has since been expanded to include previous homeowners.
“At an increasingly difficult time for those aiming to get onto the property ladder, we remain committed to finding innovative solutions to support them,” said Jen Lloyd (pictured), head of mortgage products and propositions at Skipton Building Society. “Our track record mortgage, which launched in May last year, was designed to help aspiring homeowners who have a strong history of paying rent and bills but due to rising costs are unable to save for a house deposit.
“By increasing the maximum term from 35 to 40 years, allowing new build flats, introducing a shared ownership option, and adopting a more flexible approach to affordability, we’re removing some of the barriers people faced when wanting to use track record. We believe that these updates will have a real impact for those who are wanting to have a home of their own.”
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