Skipton eases 100% mortgage acceptance criteria so it's more widely available

by Aaron Strutt

Sep 07 2023

Skipton Building Society has opened up its Track Record mortgage so it is available to more people.

The product was previously limited to first-time buyers with a track record of renting, but it is now available to anyone who has been renting and hasn't owned a property in the last three years in the UK or abroad.

What is Skipton offering with its 100% mortgage?

• Up to 100% loan-to-value for current renters who haven't owned a property in the last three years and can demonstrate a track record of affordability of all monthly rent for a minimum of 12 months in the previous 18-month period.
• The monthly mortgage payment must be equal to or lower than the average of the last six months' rental cost. For example, if the average rent over the last six months is £800, the mortgage payment must be £800 or lower.
• The maximum term is 35 years.
• The maximum income multiple is 4.49x salary or 4.75x salary if you earn over £100,000.

Who is eligible for Skipton's 100% mortgage?

You are likely to be eligible for this product if:

• Each client has not owned a property in the UK or abroad in the last three years.
• Each applicant is aged 21 or over.
• If they have a deposit, it must be less than 5% of the purchase price.
• You have not missed any repayments on credit commitments in the last six months.
• They want to borrow up to £600,000 and purchase a new build flat.
• They have proof of having paid rent for at least 12 months in a row on a UK property within the last 18 months.
• They have 12 months of experience paying all household bills within the last 18 months.

Sole applicants:

• They've paid all rent for 12 months in a row within the last 18 months. Depending on circumstances, we may also want to see proof of payments of household bills.

For joint applicants (up to 4 people):

• You can prove that all rent has been paid either by one applicant or collectively for 12 months within the last 18 months.
• If you've been renting separately, you can prove you have paid all your rent.
• In either case, we may also want to see proof of payments of household bills.

How popular has Skipton's 100% mortgage been?

Skipton's 100% mortgage probably has not been as popular as the lender thought, but it has helped many first-time buyers onto the property ladder.

Many first-time buyers have some deposit and do not need a 100% mortgage, although many people are stuck renting with no real option of buying a property.

High rents in London and the south-east make it tricky for renters to qualify for the 100% deal but in other parts of the UK, it is easier to qualify for the mortgage.  

It is also worth noting this product is available for those with 4%, 3%, 2% and 1% deposits, provided they have a track record of renting. 

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage