Skipton Building Society introduce Shared Ownership Track Record Mortgage

No deposit required for new Shared Ownership mortgage product

Skipton Building Society has unveiled a new mortgage option aimed at helping budding buyers take their first step onto the property ladder. The new product, known as the Shared Ownership Track Record mortgage, offers renters a unique opportunity to purchase their first home without the need for a deposit.

Building on the principles of a traditional Shared Ownership mortgage, this product allows buyers to purchase a share of a property, typically ranging from 25% to 75%, although this can be as low as 10% depending on the Shared Ownership model, while paying rent on the remaining portion to a housing association.

What sets this mortgage apart is that, according to Skipton Building Society, this is the only 100% mortgage option currently available which is specifically aimed at renters, providing a lifeline to those who meet the criteria for both Shared Ownership and Skipton’s Track Record Mortgage.

This mortgage comes with a five-year fixed interest rate set at 5.6%, offering potential homeowners stability and predictability in their monthly payments during the initial years of homeownership.

In addition to launching the new mortgage, Skipton has made several enhancements to its existing Track Record Mortgage. These improvements include extending the maximum mortgage term from 35 years to 40 years and making the product available for new-build flats. Skipton has also refined its affordability calculations to better support aspiring purchasers in achieving their goal of homeownership.

Since the launch of the Track Record Mortgage, Skipton has received over £122 million in applications from renters across the UK, with Scotland leading the way in terms of regional interest.

So, what are some of the key takeaways of the Shared Ownership Track Record Mortgage?:

• Skipton will use your track record of paying rent to work out what you may be able to borrow.
• While they will accept a deposit of less than 5%, buyers won’t need a deposit to apply for the mortgage.
• The interest rate on the mortgage is a fixed rate for five years, meaning your rate won’t change during that time.
• They won’t charge you any fees for the completion of the mortgage.
• To be eligible for the product, you must at least 21 years old, not have owned a property in the UK within the last three years, have no missed payments on debts or credit commitments in the last six months, and want to borrow up to £600,000.

To find out more about the Shared Ownership Track Record Mortgage, if you’re eligible and whether it’s the right option for you, we would recommend speaking with a specialist mortgage broker.

Share to Buy is a one stop shop for affordable homes. On our website, you can search for properties, compare mortgages and find out all you need to know about alternative home-buying schemes such as Shared Ownership via our article index.