Skipton Building Society is enhancing and extending the borrowing policy of its Track Record Mortgage, which provides a 100% mortgage exclusively for renters.

In addition, the mutual is also launching a Shared Ownership Track Record mortgage to enable more aspiring homeowners, who are trapped in the rental cycle, to have the opportunity to purchase a home of their own.

The new Track Record Mortgage policy enhancements which start today include:

• Maximum mortgage term increase from 35 to 40 years.
• Now available on new build flats.
• New flexible underwriting approach to the “household to household” criteria

Where policy allows, Skipton may accept applicants without rental experience as long as an accompanying applicant meets all eligibility criteria.

• Relaxed rent to monthly mortgage payment criteria

After one year of helping renters into their homes Skipton has made various improvements to the way it calculates affordability. This means in some circumstances Skipton will lend loans which have monthlypayments up to 120% of the rent the customer is currently paying

• Now acceptable in conjunction with a Shared Ownership mortgage. (Separate product with rate of 5.60%)

With a Shared Ownership mortgage, the borrower purchases a share of the property they want to buy – usually between 25% and 75% – and rent the rest of their home from a housing association or registered landlord, usually below the market rate. Track Record Shared Ownership follows these same rules and can be used if the borrower matches the criteria of both shared ownership and Track Record Mortgage.

Since the launch of the Track Record mortgage, Skipton has seen over £122 million in applications from renters, with Scotland topping the chart for the region with the most applications.

Jen Lloyd, head of mortgage products & 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. 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, managing director 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.”