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Press Release Article

This article is intended for journalists to provide them with the latest news about Skipton.

Skipton breaks trapped rental cycle, launching the UK's first 100% LTV Mortgage exclusively for renters

9 May 2023 by Rebecca Willey

In an industry first, Skipton Building Society is handing a lifeline to tenants across the country, to help them break out of their trapped rental cycles and onto the property ladder for the first time, with the launch of its Track Record Mortgage.

Row of houses
  • Skipton’s Track Record Mortgage will enable renters to access the property ladder without a house deposit taking away the dependency on the Bank of Mum & Dad or guarantors
  • Tenants who can evidence affordability for a mortgage and have a strong track record of rental payments can borrow up to 100% of a property value with this new 5-year fixed rate mortgage
  • Skipton anticipates high demand for the Track Record Mortgage, warning it may sell out quickly

There are 4.6m households renting privately across England, which is more than double (+112%) the number recorded in 2000 - Rental research from Skipton exposes how eight in ten tenants feel ‘trapped’ in the rental cycle, paying rents that are higher than a mortgage which then prevents them saving a deposit to buy their own home. At the same time house prices for first time buyers have risen by an average of 18 per cent in the last two years, an increase of £39,680.

The cost-of-living crisis is cited as the main setback for renters, who are now saving less for a deposit than ever before, with 41 per cent stating house prices in their area are rising too quickly for them to keep up. More than one in three (35 per cent) are struggling to save due to increased rent – and are now having to find an extra £1,000 per year for their landlord.

Skipton’s Track Record Mortgage will enable people trapped in these rental cycles who are prevented from saving for a house deposit, to access the property ladder and make a home their own. As a responsible lender, Skipton is ensuring that the buyers will not be paying more on a monthly basis than what their current rent is.

Charlotte Harrison, CEO of Home Financing at Skipton, said: “We need to tackle the UK’s housing affordability crisis to enable more people, especially renters who are trapped in renting cycles, to buy their first home.

"People trapped in renting is one of the UK’s biggest housing challenges, having 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.

"We recognise there’s a clear gap in the market for people who have a strong history of making rental payments over a period of time so can evidence affordability of a mortgage – but there is currently no solution for them to buy a property due to lack of savings or access to family wealth. It is time for a re-think on these massive barriers to home ownership, and we’re proud to take the lead on bringing to the market, solutions for such a massive social problem.

"This is why we’re introducing our Track Record Mortgage. It has been carefully created with the challenges generation rent is facing in mind, together with the potential risks and challenges they may encounter in the future too. In building our mortgage product with these challenges at the centre we’re ensuring considerations around negative equity have been fully taken into account.”

Skipton’s Track Record Mortgage product details:

  • 5-year fixed rate product at 5.49% over a max term of 35 years
  • Tenants can borrow over 95% up to 100% loan to value
  • Available to tenants aged 21 and above
  • Available for first time buyer purchases only
  • Subject to affordability and credit score, plus evidence of a minimum of a 12-months good track record rental history
  • As a responsible lender, Skipton is ensuring the monthly mortgage payment for each applicant is not more than the average of their last six months rental costs that they have paid. For example, a tenant paying an average of £800 per month over the last six months will have a maximum monthly mortgage payment of £800

Average Great Britain Rent vs the Track Record Mortgage:

GB Average monthly rent in Q4 2021 GB Average monthly rent in Q4 2022 Year on Year price change to monthly rent 100% Track Record Monthly Payment Max Property value with 100% LTV based on monthly rent
£1,160 £1,290 £130 £1,290 £240,509.54

Average Rents Data source: Hamptons (part of the Skipton Group) & ONS House Price Index.

Example based on the average Great British rent amount of £1,290 (applicant borrowing at 100% loan to value with an interest rate of 5.49% over a 35-year mortgage term) Skipton may lend them based on this monthly rent they’re used to paying up to £240,509 (but this is subject to criteria, credit score, affordability, and rental track record).

Charlotte Harrison, added:

“We know there isn’t one quick solution to addressing this huge societal challenge of tenants being trapped in renting cycles, with rents escalating faster than mortgage payments and the increasing costs of living, but doing nothing isn’t going to solve this UK housing issue. As a responsible lender, we need to be sensible with our approach for bringing this product to the market and ensure tenants don’t take on more than they can realistically afford.

“We know this product will not be able to help everyone and is only part of the solution for this group of people, but as a lender, we’re taking a stand to offer innovation in this space to help turn generation rent into generation buy.”

For further details on the product and the full eligibility criteria visit - which also includes Skipton’s new Track Record calculator, which gives renters an initial indication of the maximum amount they could borrow based on their average rental payments from over the last six months. This will be the maximum amount they can borrow during their fixed-rate period, which will not be more than their average rent over the past 6 months.

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