"We're 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. "
- Jen Lloyd, head of mortgage products and propositions at Skipton
Skipton Building Society is enhancing and extending the borrowing policy of its 100% LTV Track Record mortgage, alongside the launch of a new shared ownership Track Record product.
The mortgage, which launched in May last year, is available to tenants who feel 'trapped' in the rental cycle.
Originally designed for first-time buyers, Track Record later opened its policy to enable people who have previously owned a home to apply for the product.
Since the launch of the Track Record mortgage, Skipton has seen over £122 million in applications from trapped renters up and down the country, with Scotland topping the chart for the region with the most applications.
Criteria enhancements
As part of the new Track Record policy enhancements, the maximum mortgage term has increased from 35 to 40 years and the product is now available on new build flats.
Skipton has also launched a new flexible underwriting approach and may now accept applicants without rental experience as long as an accompanying applicant meets all eligibility criteria.
The Society has also relaxed its rent to monthly mortgage payment criteria. This means in some circumstances it will lend loans which have monthly payments up to 120% of the rent the customer is currently paying, up from 100% previously.
As part of the changes, Track Record is now acceptable in conjunction with a shared ownership mortgage.
The shared ownership Track Record mortgage is a five-year fixed rate at 5.60%.
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 rising 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're 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.
“By increasing the maximum term from 35 to 40 years, allowing new build flats, introducing a shared ownership option, and adopting a more flexible approach to affordability, we’re removing some of the barriers people faced when wanting to use Track Record. We believe that these updates will have a real impact for those who are wanting to have a home of their own.”
