Tenants who can evidence affordability for a mortgage, have a strong track record of rental payments and haven’t owned a home in the last three years can now borrow up to 100% of a property value (through Skipton) to help them back onto the property ladder.
The expansion to its Track Record mortgage criteria follows Skipton trialing and reviewing the product post launch.
Upon introduction of Track Record, Skipton outlined it would be actively listening to customers and the broker community to continually evolve its offering to ensure it met the needs of trapped renters.
In just over four months since launch Skipton has received over £40m in mortgage applications, with over 50% of the applicants purchasing terraced house properties and with almost 1 in 5 (17%) applicants being located in Scotland alone.
Skipton CEO of home financing Charlotte Harrison says: “We launched our Track Record mortgage because we recognised a clear gap in the market for people who have a strong history of making rental payments over a period of time and able to clearly evidence affordability of a mortgage – but there was no solution for them to buy a property due to lack of savings or access to family wealth.
She adds: “People trapped in renting is one of the UK’s biggest housing challenges that has a massive impact on the fabric of our society.
“We know this product will not be able to help everyone and is only part of the solution for this group of people, but as a lender, we’re taking a stand to offer innovation in this space to help turn generation rent into generation buy.”
