Skipton Building Society is expanding its Track Record Mortgage criteria, enabling tenants who have previously been homeowners to break out of their rental cycle without the need of a deposit.
Interested tenants with a strong track record of rental payment history can now borrow up to 100% of a property value.
This criteria expansion follows Skipton successfully trialling and reviewing the product since its launch.
Upon launch 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.
Charlotte Harrison, CEO of home financing at Skipton, said: “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.
“I’m proud to announce that from today we’re expanding the eligibility of the product to include renters who have previously owned a home.
“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 onto the property ladder can be a difficult one, leaving many trapped renting, even after previously owning their own home.”
She added: “Significant rises in house prices over recent years, on top of the associated costs that come with buying a home, means 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 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.
“People trapped in renting is one of the UK’s biggest housing challenges that has a massive impact on the fabric of our society.
“With escalating rents and the cost-of-living squeeze further impacting people’s ability to save for a house deposit – it’s making it almost impossible for people get onto the property ladder.
“In expanding our lending criteria, we’ll be able to help more people to get the keys to their own home.”
