Skipton Building Society has announced a significant round of rate cuts across several of its mortgage products, with the reductions set to take effect from 9:00am on Monday, 28th July.
The changes include notable decreases in the rates for its first-time buyer offerings, particularly the 100% Track Record mortgage, now set at its lowest level since launch.
The Track Record mortgage – first introduced in May 2023 – was the first product of its kind in the UK to allow renters with a strong payment history to buy a home without needing a deposit.
Since its debut, the product has attracted over £296m in applications, offering a pathway to homeownership for those locked in the rental market.
Under the new pricing, the 5-year fixed rate with no cashback will fall from 5.49% to 5.09%, while the 5-year fixed with £1,000 cashback will drop from 5.59% to 5.24%.
Beyond the Track Record mortgage, Skipton has also made reductions across other first-time buyer products, including its 2-year Delayed Start mortgage range.
This product, which offers borrowers a three-month reprieve from repayments at the start of their term, now features more competitive rates.
Notably, the 2-year fixed rate at 90% loan-to-value (LTV) has dropped to 4.84% from 4.89%, while the 95% LTV version has been reduced to 4.99% from 5.05%.
The 95% LTV New Build option now sits at 5.09%, down from 5.15%.
Further reductions have also been applied to selected 2-year fixed and Base Rate Tracker mortgages.
Highlights include a 2-year fixed, 95% LTV deal with no fees or cashback now priced at 4.89%, and a 2-year fixed purchase product at 60% LTV with a £1,495 fee now at 3.95%, down from 4.03%.
The remortgage equivalent has been reduced to 3.99% from 4.06%.
The move comes amid growing concern over the barriers facing prospective homeowners, particularly younger renters.
Research from the Building Societies Association (BSA) revealed that 43% of renters feel they should already own a home but haven’t been able to achieve this goal.
The figure rose to 59% among renters aged 25 to 44, and worryingly, a third in this age group no longer believed they will ever be able to purchase a property.
For many, the challenge lies in saving for a deposit, with 67% of first-time buyers citing this as the biggest hurdle.
Skipton’s own Home Affordability Index underscored the scale of the problem.
It found that nine in 10 people cannot afford a typical first-time buyer home in their local area, while nearly 80% of prospective first-time buyers lack sufficient savings for a deposit.
In addition, almost four in 10 renters are spending 45% or more of their income on housing, significantly hampering their ability to save.
Jen Lloyd, head of mortgage products and proposition at Skipton, said: “Research on renters from the BSA and through Skipton Group’s own Home Affordability Index, highlights just how many aspiring homeowners are continuing to be held back by the challenge of saving for a deposit.
“This needs to change, too many renters who expected to own a home by now are still unable to take that first step onto the ladder. This is not because of a lack of commitment, but because saving for a deposit remains one of the biggest hurdles.
“Skipton’s Track Record Mortgage was designed specifically to help tackle this challenge, by enabling renters with a strong history of rent payments to step onto the property ladder without needing a deposit.
“With today’s rate reduction bringing Track Record to its lowest level since launch, we’re making it even more accessible for renters to realise their homeownership ambitions.
“We want to continue to offer innovation that truly reflects the realities people are dealing with today.”
