28 Skyline | Edition 6 | Autumn 2023
Skipton for Intermediaries ‘ Track Record ’ gets even better
Skipton for Intermediaries product , ‘ Track Record ’, is in prime position to help ex-homeowners-turned-renters get back onto the property ladder .
In case you missed the launch earlier this year , 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 to help them back onto the property ladder . Skipton has since further extended its home ownership lifeline to enable these tenants , to break out of their trapped rental cycles , without the need for a deposit , thanks to revised criteria . This expansion to Track Record ’ s criteria follows Skipton successfully trialling and reviewing the product since its launch , as the first lender to offer an innovative product of this kind to meet one of the UK ’ s key housing needs .
At launch , Skipton outlined it would be actively listening to customers and the adviser community to continually evolve its offering to ensure it met these trapped renters needs , where in just over four months , they received over £ 40 million 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 .
Charlotte Harrison , CEO of home financing at Skipton was asked about the decision to support this underserved segment of the population and how they intended to keep it fresh and applicable as markets change : “ Following the successful launch of our Track Record Mortgage for first time buyers , we have actively reviewed the product and listened to customer feedback , focusing on how we can develop it further to help more people break free from being stuck in trapped rental cycles .
“ Sadly , there are a number of reasons why people fall off the property ladder , from divorce , to relocating to a new area , and even critical illness . However , for many the climb back can be a difficult one , leaving many trapped renting , even after previously owning their own home . Significant rises in house prices over recent years , on top of the associated costs that come with buying a home , mean even after retaining equity from a previous property sale , securing a deposit while renting is still a blocker for those trying to get back onto the ladder .
“ We launched 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 .
“ People trapped in renting is one of the UK ’ s biggest housing challenges that has a massive impact on the fabric of our society . In expanding our lending criteria , we ’ ll be able to help more people to get the keys to their own home .”