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Press Release Article

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

Skipton steps in to help ex homeowners-turned-renters back onto the property ladder by expanding its Track Record Mortgage criteria

4 September 2023 by Rebecca Willey

Skipton is expanding the Track Record Mortgage criteria to support even more trapped renters.

Charlotte Harrison, CEO - Home Financing
  • Since launching Track Record in May, Skipton has already received over £40 million in mortgage applications
  • 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.

Today Skipton Building Society is extending its home ownership lifeline to enable tenants who have previously been homeowners, to break out of their trapped rental cycles and back onto the property ladder, without the need of a deposit, thanks to expanding its Track Record Mortgage criteria.

Skipton is enabling tenants who have previously been homeowners prior to the last three years, who can evidence affordability for a mortgage, with a strong track record of rental payment history to borrow up to 100% of a property value.

This expansion to the Track Record mortgage criteria follows Skipton successfully trialling and reviewing the product since its launch, with it being the first lender to offer an innovative product of this kind to meet one of the UK’s key housing needs.

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 £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, 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. 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.”

Skipton’s own research has found the cost-of-living crisis is the main setback for many 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 product details:

  • 5-year fixed rate product at 6.19% 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 and those who have owned a home prior to the last 3 years
  • £0 Fees
  • 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:

Example based on the average Great British rent amount of £1,290 (applicant borrowing at 100% loan to value with an interest rate of 6.19% over a 35-year mortgage term) Skipton may lend them based on this monthly rent they’re used to paying up to £221,267 (but this is subject to criteria, credit score, affordability, and rental track record).

Charlotte Harrison, added:

“It’s time for a re-think on these massive barriers to home ownership, with lenders like us needing to take the lead on making mortgage solutions available to help tackle such a massive social problem. We’ll continue to monitor, listen and learn with our Track Record mortgage and seek other ways to evolve it so it’s able to help more people.

“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 taking steps to look at how we can improve and evolve this product further, whilst ensuring 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 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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