Low house deposit scheme ‘Track Record’ has been expanded to non first-time buyers
Skipton Building Society has relaunched a popular mortgage product, the ‘Track Record Mortgage’. Originally aimed at first-time potential borrowers looking for a low house deposit loan, Skipton has today announced that the product will now extend to both renting first-time buyers aspiring to step onto the property ladder and also previous homeowners currently renting and seeking to re-enter the market. The Skipton track record mortgage is designed to facilitate home purchases with low deposits, potentially up to 100% Loan-to-Value (LTV), offering a lifeline to those with limited savings.
What Is The Skipton Track Record Mortgage Low House Deposit Scheme?
The Track Record Mortgage is a low house deposit mortgage product, specifically tailored for individuals who haven’t owned a property in the UK or abroad within the last three years. Meaning that you can either be a first-time buyer or as long as you haven’t bought, owned, or sold a property in the last three years. Eligible applicants must demonstrate a robust track record of affordability by paying rent consistently for a minimum of 12 months within the last 18 months. Additionally, applicants must have successfully managed all household bills for the same duration. If you have not been renting previously or have struggled to pay any bills or rent, then you will not be eligible for this scheme.
Financial Stability Is Key For ANY Kind Of Mortgage
This mortgage product emphasises financial responsibility and stability. Something that is key with any mortgage application. Applicants must have no missed payments on debts or credit commitments in the past six months, ensuring a strong credit profile. The monthly mortgage payment is capped to match or be lower than the average rental cost over the previous six months. So that means that if your mortgage payment is calculated as higher than your average rent, then unfortunately this will not work for you. With a maximum term of 35 years and Loan-to-Income (LTI) ratio capped at 4.49 or 4.75 for higher earners, the Track Record Mortgage offers flexibility while maintaining responsible lending practices.
Who Is Eligible For A Low House Deposit Mortgage?
Who qualifies for the Skipton building society track record mortgage? Prospective applicants must meet specific criteria:
– Each applicant must be 21 years or older.
Slightly stricter than most lenders, Skipton insists that you are at least 21 years old to be eligible for the Track Record mortgage product. For other mortgage products you normally need to be at least 18 years old.
– The deposit should be less than 5% of the purchase price.
In order to ensure that those borrowers who really need the product are helped, you must have less than 5% deposit available. If you are looking to put down more than 5% deposit, you won’t be eligible.
– Applicants are seeking to borrow up to £600,000.
You can’t borrow more than £600,000 if you want to use the Track Record product. This is both to safeguard the money that the bank is lending and again to ensure that only those borrowers who really need the scheme are eligible.
– The property must not be a new build flat.
– Applicants must not be looking to buy property in Northern Ireland.
Buying A Property On Your Own
Sole applicants must demonstrate 12 months of consecutive rent payments and may also need to provide evidence of bill payments.
Buying With Someone Else
For joint applicants, rent payments can be shown collectively or individually, with additional documentation potentially required for separate renters.
Speak To A Mortgage Broker About Low Deposit Mortgages
As independent mortgage advisors, we at Oportfolio are proud to partner with Skipton Building Society to offer the Track Record Mortgage. With access to all lenders in the UK mortgage market, including niche products like this, we specialise in assisting borrowers with different needs, including those with low deposits. We understand how difficult it can be to save a deposit, so our team is dedicated to find solutions for everyone looking to buy their dream home.
For renters dreaming of homeownership but struggling to accumulate a large deposit, the Track Record Mortgage could be the answer. Contact our team at Oportfolio Mortgages today to explore your options and take the first step towards owning a property.
