Skipton Building Society’s Track Record Mortgage, the UK’s first 100% loan-to-value option exclusively for renters, has surpassed £91.5m in applications since its launch a year ago. Aimed at assisting renters onto the property ladder, the product has evolved to include those previously owning a home, thereby broadening its impact.
Over the past year, regions across the UK have seen varied uptake, with Scotland leading in application volume. The average purchase price across top regions ranged from £103,658 in the North East to £202,938 in the South East.
Data from Hamptons Estate Agents indicates that first-time buyers, motivated by improved affordability and reduced competition from buy-to-let landlords, now represent a third of all home purchases nationwide, a significant increase over the past decade.
Leyla Mendiolea, a customer in London, shared her experience: “I was paying around £1,500 a month for a 1 bed flat and that was due to increase to £2,000 a month in rent. But to own your first home as a first-time buyer it is a challenge, a 5% deposit was still looking like £12-£15,000.”
“However, because of our good track record of rental history and the high amount we were regularly paying in rent, it meant we could be considered for a 100% Track Record and afford our own home. Even at a time of increased mortgage rates our mortgage payment through Skipton’s Track Record mortgage was less than what we were paying in rent, owning our own property allows me to feel stability and our own safe haven that you don’t get while renting.”
Jen Lloyd, head of mortgage products and proposition at Skipton Building Society, commented on the milestone: “We launched Track Record Mortgage a year ago to tackle the UK’s housing affordability crisis and enable more people, especially renters who are trapped in renting cycles, to buy their first home.”
“I’m extremely proud that we’ve been able to make homeownership a reality for many renters who thought it might not be an option for them this time last year. With over £91.5m in applications, the success stories, and examples of how the product has allowed trapped renters to own their own home are exactly why we created this product.”
“We know there isn’t one quick solution to addressing this huge societal challenge of tenants being trapped in renting cycles, with rents escalating faster than mortgage payments and the increased cost of living but doing nothing isn’t going to solve this UK housing issue.”
“This is why we decided to further expand the product criteria late last year to not only help first time buyers but other renters who have fallen off the property ladder. We will continue to do more to innovate, not only in this space, but other areas to unlock homeownership for more.”