Lending restrictions are important and necessary for the resilience of the financial services sector and the economy, but this means lenders have to be clever when doing something different.

So when Skipton Building Society took the bold step to create its Track Record mortgage for renters at 100% LTV, the mutual made sure to do this sensibly.

While the final, live product may seem like a no-brainer as it can give access to borrowers who often feel locked out of homeownership despite consistently demonstrating their ability to pay rent, bills and other household expenses, Skipton still had to make sure it considered factors such as house price fluctuation and ensure they didn’t create trapped customers before bringing this to market.

Now, the product is a reality and has been a success – generating £134m in applications – and has since evolved to be available to some former homeowners and, more recently, people buying with shared ownership.

This is not something Skipton did completely in isolation, and the mutual turned to its intermediary partners to help widen Track Record’s reach.

It was Siobhan Holbrook, owner and director of Mortgage Light, who helped Skipton to visualise how shared ownership buyers could benefit from Track Record too.

She said: “Buying my home with a minimal deposit changed my life, and I love showing others that it’s possible. A staff member at my son’s nursery once told me she thought she and her partner needed thousands to buy. They were renting for over £1,000 a month in Milton Keynes. After a quick chat, we found a way for them to buy with just solicitor fees – now they pay £800 a month in a lovely area. They’ve since got married (I even went to the wedding!) and are starting a family.

With intermediaries predicted to transact around 89% of mortgages this year, the symbiotic relationship between the lenders and brokers cannot be understated. This is why the mutual makes sure to always listen to those at the coal face.

To ensure that the Skipton proposition continues to adapt to the changing market, Skipton hosts quarterly broker listening forums around the country where brokers meet key Skipton stakeholders to discuss potential changes and help shape future innovation.

While Skipton keeps its ear to the ground regarding the needs of borrowers, mortgage advisers are key in bridging any gaps they might identify through directly speaking to clients and submitting applications.

One that has already been identified since broadening out to shared ownership is the need for some housing associations to accept different forms of deposit and be open to borrowers who use 100% mortgages.

Advocating for this mindset change is something Skipton hopes and expects its intermediary partners to support it in, to ensure the mutual can help more first-time buyers and become the go-to lender.

After all, cohesion and cooperation are key in making the mortgage market work for all borrowers across all customer touchpoints.

To find out more about the improved Track Record Mortgage, visit Track Record Mortgage | Skipton Building Society for Intermediaries (skipton-intermediaries.co.uk)

For Intermediary Use Only