Skipton Building Society has launched a 100% mortgage aimed at renters providing them with a route to home ownership without the need for a deposit or guarantor. The 'Track Record Mortgage' is the first of its kind seen since 2008 and is available without other financial guarantees. As renters struggle to save a deposit due to rising rental prices and the impacts of the increasing cost of living, Skipton's unique mortgage offer may be welcome news.
In this article, we look at how Skipton Building Society's Track Record Mortgage works, who is eligible and how to apply.
How does the Skipton Track Record Mortgage work?
Skipton Building Society has launched its Track Record Mortgage which is a mortgage specifically offered to renters to give them the opportunity of home ownership without saving a deposit. The mortgage is a 100% Loan-To-Value (LTV) mortgage which means that the amount borrowed is equivalent to the price of the property.
If you are eligible for the Track Record Mortgage the interest rate will be fixed for 5 years and will not change if interest rates fluctuate during that time. It is worth considering, however, that with 100% mortgages comes a higher risk of negative equity, which means that the value of your property can drop below how much you owe. We explain more about how negative equity works in our article, 'What is negative equity?'
Key Features of the Skipton Track Record Mortgage
- It is a 100% LTV mortgage which means no deposit is required
- There is a fixed interest rate of 5.49% for 5 years
- It is for first-time buyers only
- The maximum mortgage amount is £600,000
- Applicants must be able to prove rental payments for a set period (12 consecutive months over the last 18 months)
- There are no application or completion fees
- Cannot apply if you are wishing to purchase a new build flat
Who is eligible for a Skipton Track Record Mortgage?
In order to be eligible for the Skipton Track Record mortgage you need to ensure you meet the following criteria:
- Each applicant must be a first-time buyer
- Each applicant must be 21 years old or older
- The maximum amount you wish to borrow must be no more than £600,000
- You have a deposit that is less than 5% of the property purchase price (includes gifted deposits)
- You have had no missed or late payments on any debt or credit commitments in the last 6 months (e.g subscriptions or phone bills)
- You have made 12 consecutive monthly rent payments in the last 18 months
- You have paid household bills (these can include utility bills and council tax) for at least 12 consecutive months in the last 18 months
- You meet the household-to-household criteria as mentioned below
What is the household-to-household criteria?
In order to be eligible for the Skipton Track Record Mortgage you need to ensure you meet its household-to-household criteria which we explain below:
- You must apply for the Track Record Mortgage with the same people who you are currently renting with and have been renting with for the last 12 months
- You can apply for the mortgage as a single applicant but you have to prove that you have covered all bills and rental payments alone for 12 consecutive months in the last 18 months
- If you are applying as a joint applicant, but you have been renting separately, you must prove that each applicant has solely covered rental and bill payments
Who is not eligible for a Skipton Track Record Mortgage?
You will not be eligible for a Skipton Track Record Mortgage if any of the following applies:
- You are planning to purchase a new build flat
- If your average rental payment (over the last 6 months) is less than the new monthly mortgage payment shown by the Track Record Calculator
How to apply for Skipton's Track Record Mortgage
If you think you are eligible for Skipton's Track Record Mortgage you can use Skipton's Track Record Calculator to determine the maximum amount that you may be able to borrow. This is based on the average of the last 6 months' rental payments.
Below we provide an example of how much you can borrow over a mortgage term of 35 years based on a number of rental payments. The exact amount you may be able to borrow is likely to vary depending on the mortgage term, your rental payments and your affordability.
How much can I borrow?
| Average monthly rental payment (over the last 6 months) | Mortgage term | Amount you may be able to borrow |
| £1,600 | 35 years | £298,306 |
| £1,200 | 35 years | £223,730 |
| £800 | 35 years | £149,153 |
Once you have an estimation of how much you may be able to borrow you can complete Skipton's Affordability calculator which will require information based on your current income and any outgoings that you pay. The amount that you could borrow is likely to be the lower amount from either the Track Record or Affordability calculator.
When it comes to applying for a mortgage it can be helpful to discuss your options with a mortgage broker. if you do not have one, you can find one that has been vetted near you using the VouchedFor* service. VouchedFor provides the details of a number of financial professionals that have been vetted by other customers so that you can select a mortgage broker that is conveniently located to you as well competent.
Alternatively, you can speak to a mortgage adviser at the online mortgage broker Habito*. Habito provides efficient and bespoke solutions for mortgage customers with a wide range of needs and circumstances. The advisers at Habito can search over 90 lenders' mortgage deals before recommending potential solutions based on your needs and priorities.
How does Skipton's Track Record Mortgage compare?
While Skipton's Track Record Mortgage does not require a guarantor, there are other 100% mortgages available on the market, some of which we compare in the below comparison table. It is also worth weighing up your options when it comes to applying for a mortgage to see if you are getting the best deal. How much interest is payable and the Loan to Value are just some things to consider before applying for a mortgage.
We compare some of the best mortgage rates in our article, 'Best mortgage rates in the UK' and our Mortgage comparison tool also provides the latest rates based on your circumstances. If you are unsure of the best product for you, speaking to a mortgage broker* is a good idea as they can scan the market for the best deals available to you based on your personal circumstances.
Skipton Building Society vs other 100% mortgage providers
| Skipton | Barclays | Vernon Building Society | |
| Mortgage name | Track Record Mortgage | Family Springboard | Head Start Mortgage |
| Loan to Value | 100% | 100% | 100% |
| Mortgage interest rate | 5.49% | 5.89% | 4.60% |
| Interest rate fixed term period | 5 years | 5 years | 5 years |
| Guarantor/Helper required |  |
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