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
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% 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 a rise in the maximum term from 35 to 40 years.
The lender 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.
It 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 over £122 million.
Jen Lloyd, 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 increasing 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 are 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, Lloyd added.
