Skipton Building Society has launched a shared ownership track record mortgage to give aspiring homeowners the opportunity to purchase their first home.
It follows the same rules as a shared ownership mortgage where buyers purchase a share of a property, usually between 25 and 75 per cent, and rent the rest of the home from a housing association or registered landlord.
Skipton said it is the only 100 per cent mortgage aimed at renters and can be used if the borrower matches the criteria of both shared ownership and Skipton’s track record mortgage.
This new mortgage will be available with a five-year fixed rate at 5.6 per cent.
Skipton Building Society's head of mortgage products and propositions, Jen Lloyd, said: “At an increasingly difficult time for those aiming to get on 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.
“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.”
She said Skipton is “delighted” to launch the shared ownership option.
Lloyd added: "We believe that these updates will have a real impact for those who are wanting to have a home of their own.”
The launch of the new mortgage coincides with Skipton enhancing and extending its track record mortgage, including increasing the maximum mortgage term from 35 years to 40 years and allowing its use on new build flats.
The building society has also made improvements to the way it calculates affordability which is said should help more customers step up on the property ladder.
Since the launch of the track record mortgage, Skipton has seen more than £122mn in applications from renters across the country, with Scotland topping the chart for the region with the most applications.
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
