Skipton Building Society has revamped its Track Record mortgage, making it easier than ever for renters to finally get a foot on the property ladder. The move has been hailed as a game-changer by brokers, who say it could help thousands of people escape the rental trap.
So, what’s changed? Here’s a breakdown:
More People Eligible: Previously only available to those who hadn’t owned a home before, the Track Record mortgage is now open to anyone currently renting, even if they’ve owned in the past.
Longer Terms, More Options: Skipton has extended the maximum mortgage term from 35 to 40 years, giving buyers more flexibility and potentially lower monthly payments. Plus, the mortgage can now be used to buy new-build flats, expanding your options.
Easing the Affordability Squeeze: Skipton has relaxed its criteria on the ratio between rent payments and mortgage payments. Now, your potential mortgage payment can be up to 120% of your current rent, offering some breathing room compared to the previous 100% limit.
Shared Ownership Just Got Easier: The Track Record mortgage can now be used in conjunction with a shared ownership scheme, making it a more accessible option for those struggling to buy outright.
Why is this a Big Deal? Stephen Perkins, managing director at Yellow Brick Mortgages, says: “This amendment is a stroke of genius from Skipton. With the lower cost of shared ownership properties and flats, this will literally open doors for thousands of first-time buyers who have demonstrated an ability to afford the mortgage payments.”
Justin Moy, managing director of EHF Mortgages, adds: “This is another example of mortgage lenders looking to support home ownership, especially those who may feel stuck in the relentless renting cycle. Using the level of rental payments as a means of borrowing affordability has been difficult to implement in higher-value areas, so the increase to 120% of payments is a step in the right direction.”
The Bottom Line: Skipton’s revamped Track Record mortgage offers a lifeline to renters struggling to save for a deposit in today’s market. With its expanded eligibility criteria, longer terms, and more flexible affordability rules, it’s a significant step towards making homeownership a reality for more people.