Skipton Building Society offers 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. We also explain how to get help from mortgage experts* specialising in first-time buyers who can access the Skipton Track Record Mortgage as well as a whole host of other tools to gain mortgage success.
How does the Skipton Track Record Mortgage work?
Skipton Building Society launched its Track Record Mortgage, a mortgage offered explicitly 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
- There is a fixed interest rate for 5 years of 5.29% or 5.44% with a £1,000 cashback on completion
- It is a 100% LTV mortgage which means no deposit is required
- 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
- You cannot apply if you wish to purchase a newly built flat
Specialist mortgage advice for first-time buyers
Our partner Tembo is a specialist mortgage broker that offers tailor-made mortgage solutions for people with smaller deposits including Guarantor, LTV and first-time buyer schemes.
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 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 newly built 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. Skipton says it can offer mortgage loans at monthly payments up to 120% of the average monthly rental payments made by the borrower.
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 charges 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 | £303,475 |
| £1,200 | 35 years | £227,606 |
| £800 | 35 years | £151,737 |
Skipton also uses loan-to-income ratios of 4.49 times your income or 4.75 times your income if your income exceeds £50,000. 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* professional directory 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 various needs and circumstances. The advisers at Habito can search over 90 lenders' mortgage deals before recommending potential solutions based on your needs and priorities.
Is there an early repayment charge with Skipton's Track Record Mortgage?
An early repayment charge that may concern you if you think that you may wish to move your mortgage or pay more than that allowed amount within 5 years of the start date. Early repayment charges only apply if you repay more than 10% of the mortgage balance each year over the fixed deal period of 5 years. At the time of writing, the charges for early repayment over and above the amount allowed are:
- 6% until 31 January 2026,
- then 5% until 31 January 2027
- then 4% until 31 January 2028
- then 1.75% until 31 January 2029
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 |
| Maximum Loan-to-value | 100% | 100% | 100% |
| Mortgage interest rate | 5.29% | 5.54% | 5.40% |
| Interest rate fixed term period | 5 years | 5 years | 5 years |
| Guarantor/Helper required |  |
 |
|
Details of mortgage correct as of 17th October 2024
Is the Skipton Track Record mortgage any good?
Yes, for aspiring homebuyers who struggle to save, but diligently pay rent that is equivalent to a mortgage payment, the Skipton Track Record mortgage provides a route to home ownership which is positive. Renters can often struggle to save a deposit to qualify for a mortgage to buy their own home due to the pressure of meeting their existing household commitments. Although the interest rate is slightly higher than the current average 5-year fixed-rate mortgage deal, renters won't be able to arrange a 100% mortgage by many other means and the monthly payment can't be any higher than what they are used to spending in rental payments. So, the Skipton Track Record will be a welcome addition to the mortgage market from the point of view of long-term renters.
How to choose the right mortgage for your needs
Choosing the right mortgage can be confusing with thousands of mortgage deals to consider but for homebuyers who have small or no deposits, the number of deals shrinks. This means that the choice can be made more easily but it is still worthwhile to speak with a qualified first-time buyer mortgage specialist* to understand which mortgage deals will suit your needs best. Even if you are able to qualify for Skipton's Track Record mortgage, there may be other options that suit your circumstances better or reduce the overall cost of repaying your mortgage. You need not pay for a mortgage broker as you can choose from a large number that does not charge a fee and benefit from the peace of mind this will provide.
A mortgage broker will take the time to understand your circumstances before searching the mortgage market on your behalf and presenting the best options for you to choose from. Good mortgage brokers will also support you with the application process, helping you provide all the supporting documentation that you will need in order to meet the qualifying criteria for your mortgage. Once a mortgage offer is made and you complete on your house purchase, your mortgage broker will be paid a procuration fee from the lender which is why some mortgage brokers choose not to charge the borrower.
If you do not have a mortgage broker, you can use the professional directory services VouchedFor* or Unbiased* - both provide details of mortgage brokers based on your local area, the services that you need and you can read real customers' reviews before you hire one.
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Habito, Vouchedfor, Tembo Money