Skipton launches UK’s first 100% LTV Mortgage exclusively for renters.


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

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 its Track Record Mortgage launch.

  • 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.

Martin Lewis: I cautiously welcome this, done carefully, after advice.’

Given that Skipton is offering these mortgages to people who have proved that they can pay their rent indicates that they are being responsible lenders.

There are 4.6m households renting privately across England.

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 higher rents than a mortgage which prevents them from 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% in the last two years, an increase of £39,680.

The cost-of-living crisis is cited as the main setback for renters.

People are now saving less for a deposit than ever, with 41% stating house prices in their area are rising too quickly for them to keep up. More than one in three (35%) 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.

Many people are prevented from saving for a house deposit to access the property ladder and make a home their own. As a responsible lender, Skipton ensures that the buyers will not pay more monthly than their current rent.

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 to 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 to re-think these massive barriers to home ownership, and we’re proud to take the lead on bringing solutions to the market 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 faces in mind and the potential risks and challenges they may encounter in the future. 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-month good track record rental history
  • As a responsible lender, Skipton ensures the monthly mortgage payment for each applicant is not more than the average of the last six months’ rental costs 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 2021GB Average monthly rent in Q4 2022Year on Year price change to monthly rent100% Track Record Monthly PaymentMax Property value with 100% LTV based on monthly rent

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

For 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 to 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 here; 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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