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.

As a responsible lender, Skipton is ensuring that the buyers will not be paying more on a monthly basis than what their current rent is.

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 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 for a re-think on these massive barriers to home ownership, and we’re proud to take the lead on bringing to the market, solutions 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 is facing in mind, together with the potential risks and challenges they may encounter in the future too. 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-months good track record rental history
• As a responsible lender, Skipton is ensuring the monthly mortgage payment for each applicant is not more than the average of their last six months rental costs that 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

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 for 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.”