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Skipton Building Society Launches Track Record Mortgage – A Solution for Renters to Achieve Homeownership

Skipton Building Society has unveiled an innovative mortgage product designed exclusively for current renters who feel trapped in the rental cycle. The Track Record Mortgage offers a 100% loan-to-value (LTV) option, enabling eligible tenants to purchase their own homes without the need for a deposit. This ground-breaking initiative aims to address the challenges faced by renters in saving for a deposit while combating rising house prices. Let’s explore the key features and benefits of the Track Record Mortgage.


Key Features

Loan-to-Value (LTV) and Interest Rate: The Track Record Mortgage is available at a loan-to-value (LTV) between 95-100%. The product is also only offered if you commit to paying a fixed rate of interest for five-years. This means that even if interest rates go up or down your interest rate will stay the same for the five-year fixed period. Currently the fixed rate available is 5.49%.


Example 1 

Example 2 

House Value



Mortgage amount



Term of mortgage

35 years

35 years

Monthly payment for fixed period 



*Based on 5.49% fixed for five-years. 

Eligibility Criteria: To qualify for this mortgage product:

  • Each applicant must be a first-time buyer
  • Each applicant must be aged 21 or over at time of application
  • Each applicant has no missed payments on debts/credit commitments over the last 6 months.
  • Must have proof of having paid at least 12 months’ consecutive rent within the last 18 months 
  • Must have 12 months experience paying all household bills (e.g utility bills, council tax etc)
  • Looking for a loan of £600,000 or less
  • Applicants must be the same people who are renting now (and have been for the last 12 months) who are the same people applying for the mortgage.

Affordability Assessment: Skipton ensures that the monthly mortgage payment for each applicant does not exceed the average rental costs they have paid over the last six months. This approach allows tenants to transition smoothly from rental payments to mortgage payments without a significant financial burden. For example, if your average rent over the last six months was £900pm your maximum monthly mortgage payment would be £900. 

You must be able to provide proof of paying 12 months rent in a row during the last 18 months and have experience of paying all household bills for the same period. 



The introduction of the Track Record Mortgage reflects Skipton Building Society’s commitment to tackling the UK’s housing affordability crisis and providing solutions for those trapped in the rental cycle. By considering the challenges faced by Generation Rent, Skipton has developed a mortgage product that considers both current affordability and potential future risks.

The Track Record Mortgage addresses the affordability crisis faced by renters, who often struggle to save for a deposit due to high rents and escalating living costs. Skipton’s research reveals that eight in ten tenants feel trapped in the rental cycle, paying rents that exceed mortgage costs, hindering their ability to save for homeownership.

Skipton acknowledges the lack of solutions for renters who demonstrate a strong history of consistent rental payments and affordability for a mortgage but lack the savings or access to family wealth required for a deposit. The Track Record Mortgage aims to bridge this gap and empower renters to become homeowners.

There is a gap in the market for a product that is underwritten prudently and carefully assesses affordability based on the rent currently being paid. This product provides an opportunity for a new generation of homebuyers to escape the rental treadmill and enjoy the security of homeownership.



It’s important to consider the risks as well as the benefits. As you are obtaining a mortgage between 95-100% of the value of the house there is a risk that you could be in negative equity. Negative equity is when the outstanding mortgage owed on a home is more than the value of the property itself. If house prices drop significantly this could leave you in a tricky situation if you need to sell. It’s important to understand the risk before you take on a huge financial commitment. 

This can be offset by putting down a small deposit, this product is also available for those who have a deposit of 5% or less. This can help alleviate any fears of being in negative equity. Overpaying on the mortgage can also help reduce your mortgage balance and reduce your chances of being in negative equity.

It is also important to remember that your home is at risk if you do not keep up repayments on a mortgage secured on it. 

This product has limited availability and may be withdrawn at any time and without notice. As this may be a popular product it may be likely that Skipton withdraw the product temporarily as they cannot handle the demand of applications. 


What are the next steps?

Skipton Building Society’s Track Record Mortgage offers hope and opportunity for renters who have been struggling to save for a deposit while paying high rents. By considering rental payment history and affordability, this innovative mortgage product provides a pathway to homeownership for eligible applicants. With the launch of the Track Record Mortgage, Skipton aims to contribute to resolving the housing affordability crisis and empower tenants to realize their dreams of owning their own homes.  

  • Track record calculator – Firstly you will get an initial indication of how much you can borrow based on average rental payments over the last 6 months.
  • Affordability calculator – This will be a more detailed view of your situation and will look at how much you can borrow based on income and outgoings. The maximum you can borrow will be whichever amount is lower of the track record calculator and affordability calculator. 


Track record calculator = £230,000 maximum loan

Affordability calculator = £270,000 maximum loan 

£230,000 will be the maximum you can borrow, as this is the lower of the two figures.

  • Decision in principle – Using the maximum loan amount you can request a decision in principle (DIP). Many estate agents will ask to see your DIP as proof you could afford the property you are viewing. 
  • Full application – Once you’ve found your dream home and you’ve had an offer accepted. You’ll then submit a full application. This is where you’ll need to provide evidence of your salary and your rent payments, so be prepared! 


How PIL Southampton can help you to get a mortgage 

Our experienced, friendly team at Protection & Investment Ltd (PIL) has been helping clients through the process of buying their first home for over 25 years. 

Certain mortgage offers, schemes and initiatives are only available to first-time buyers, so it is important that you get the right advice to ensure that you get the best deal for you. 

Our experience is an asset that benefits you when you work with us, as we help to navigate you through every step of the process. We bring to your attention all the financial options available based on your circumstances, needs and plans, and advise you in a clear (no jargon) and straightforward way.


How you can contact PIL Southampton

Our friendly, knowledgeable mortgage advisers are here to guide you through the mortgage process, every step of the way. You can email us, fill out the contact form on our website or call us on 02380 668407.