From today (Monday 2nd September) Skipton Building Society has launched a Shared Ownership Track Record Mortgage, while extending the borrowing policy of its existing Track Record Mortgage offering.
The society’s Track Record offering is now acceptable in conjunction with a Shared Ownership mortgage, available for a 5-year fixed rate.
The product will have a rate of 5.60%, compared to that of the regular Track Record Mortgage, which has a rate of 5.49%.
Track Record Shared Ownership will follow the same rules as a standard Shared Ownership product, and can be used if the borrower matches the criteria of both Shared Ownership and Track Record Mortgage.
In addition, the society introduced enhancements to its existing Track Record Mortgage policy.
These include a maximum mortgage term increase from 35 to 40 years, eligibility for new-build flats and an expanded, flexible underwriting approach to the ‘household to household’ criteria.
Where policy allows, the society may also accept applicants without rental experience as long as an accompanying applicant meets all eligibility criteria.
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.”
She continued: “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.”
Andrew Montlake, MD of Coreco mortgage brokers, added: “These changes to Skipton’s Track Record mortgage product show just how determined an innovative lender can be to breathe oxygen into the lifeblood of the housing market.
“Allowing borrowers who can afford it to borrow more than their current monthly rental payment is a good step forward, whilst offering this product on New Build Flats could be seen as a game changer for many.
“Whilst this product will not suit everyone, and professional advice should always be taken before taking out a mortgage, there is no doubting Skipton’s commitment to help more First-Time Buyers get onto that first rung of the housing ladder.”
