The mutual has also changed the criteria on its existing Track Record Mortgage to enable more renters to buy their own home.
The Track Record Mortgage was launched a year ago and enables tenants to get a mortgage up to 100% of the property’s value by taking into account what they are currently paying in rent.
Since its launch, Skipton has seen over £122m in applications from renters up and down the country.
Now, the building society has changed its mortgage lending policy to help more borrowers trapped in the rental cycle to buy a home.
It has increased the maximum term from 35 to 40 years, will lend on new-build flats and will take a more flexible and generous lending approach, including lending to those without rental experience if another applicant meets all criteria.
Shared Ownership Track Record Mortgage launched
The lender has also launched a new Shared Ownership Track Record Mortgage.
The five-year fixed rate priced at 5.6% is available to those buying a share of the property between 25% and 75% and renting the rest of their home from a housing association or registered landlord.
Track Record Shared Ownership can be used if the borrower matches the criteria of both shared ownership and the Track Record Mortgage.
Jen Lloyd, head of mortgage products and propositions at Skipton Building Society, said: “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.
“And 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. Today, we’re delighted to not only launch a Shared Ownership version of the product, but to expand this offering once again with a series of enhancements that will help even more trapped renters.
“We’re removing some of the barriers people face when wanting to use Track Record.”
Andrew Montlake, managing director of Coreco Mortgage Brokers, added: “These changes to Skipton’s Track Record Mortgage product show just how determined an innovative lender can be to breathe oxygen into the lifeblood of the housing market.
“Allowing borrowers who can afford it to borrow more than their current monthly rental payment is a good step forward, whilst offering this product on new-build flats could be seen as a game-changer for many.”
