Skipton’s track record mortgage was initially aimed at helping renters get out of rental cycles using rental history to bolster affordability with a deposit of less than 5% or no deposit accepted. The product is fixed for five years and has no completion fee.
The deal was initially aimed at first-time buyers, but the mutual widened its criteria in September last year to allow tenants who had been homeowners prior to that last three years, can evidence affordability and offer a strong record of rental payments.
In figures released on 8 May, Skipton Building Society said that the average purchase price of a property using the track record mortgage came to £152,015.
Scotland topped the list in terms of applications, with 15% of applications coming from this region. This was followed by the North West at 14% and the South East at 12%.
At the bottom of the list came the South West and the West Midlands at 7%, and Wales and the East Midlands at 8% respectively.
The report found that 48% of applications were for terraced houses, followed by 30% for flats, 18% for semi-detached houses and 2% for detached houses and bungalows.
‘Doing nothing isn’t going to solve this UK housing issue’
Jen Lloyd (pictured), head of mortgage products and proposition at Skipton Building Society, said: “We launched [the] track record mortgage a year ago to tackle the UK’s housing affordability crisis and enable more people, especially renters who are trapped in renting cycles, to buy their first home.
“I’m extremely proud that we’ve been able to make homeownership a reality for many renters who thought it might not be an option for them this time last year. With over £91.5m in applications, the success stories, and examples of how the product has allowed trapped renters to own their own home, are exactly why we created this product.”
She continued: “We know there isn’t one quick solution to addressing this huge societal challenge of tenants being trapped in renting cycles, with rents escalating faster than mortgage payments and the increased cost of living, but doing nothing isn’t going to solve this UK housing issue.
“This is why we decided to further expand the product criteria late last year to not only help first-time buyers but other renters who have fallen off the property ladder. We will continue to do more to innovate, not only in this space, but other areas, to unlock homeownership for more.”
Leyla Mendiolea, a Skipton track record mortgage customer living in London, said: “I was paying around £1,500 a month for a one-bed flat and that was due to increase to £2,000 a month in rent. But to own your first home as a first-time buyer, it is a challenge; a 5% deposit was still looking like £12,000-£15,000.
“However, because of our good track record of rental history and the high amount we were regularly paying in rent, it meant we could be considered for a 100% track record and afford our own home. Even at a time of increased mortgage rates, our mortgage payment through Skipton’s track record mortgage was less than what we were paying in rent. Owning our own property allows me to feel stability and [have] our own safe haven that you don’t get while renting.”
