Skipton Building Society has released a shared ownership version of its Track Record mortgage, which allows renters to use their rental payment history to borrow at 100% loan to value (LTV).
Skipton Building Society said the shared ownership Track Record mortgage would give more aspiring homeowners who feel trapped in the rental cycle to get onto the property ladder.
The mutual has also adjusted the policy of the original Track Record mortgage including an increase in the maximum term from 35 to 40 years.
The firm will also now lend on new-build flats and has introduced a new flexible underwriting approach to the ‘household to household’ criteria. This means that, where policy allows, Skipton Building Society will consider clients without rental experience as long as an accompanying applicant meets all the eligibility criteria.
The lender has also relaxed its rent to monthly mortgage payment criteria and changed the way it calculates affordability. Now, Skipton Building Society may lend loans which have monthly payments up to 120% of the rent the borrower is currently paying.
The shared ownership Track Record mortgage is fixed for five years and has a rate of 5.6%, while the original Track Record mortgage is priced at 5.49%.
Since launching its Track Record mortgage last year, Skipton has received applications worth more than £122m.
‘Innovative solutions’ for aspiring homeowners
Jen Lloyd (pictured), head of mortgage products and propositions at Skipton Building Society said: “At an increasingly difficult time for those aiming to get onto the property ladder, we remain committed to finding innovative solutions to support them. 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.
“And since its launch we have worked hard to make various policy changes to open those doors for even more, listening to customer feedback and monitoring how the product is used. Today, we’re delighted to not only launch a shared ownership version of the product but to expand this offering once again with a series of enhancements that will help even more trapped renters.”
She added: “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.”
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
