...By Henry George for TDPel Media.
Skipton Building Society has launched a new mortgage product aimed at helping renters become homeowners.
The “track record” mortgage is designed for those who have been unable to save for a deposit and offers up to 100% of the value of the property.
Eligibility Requirements: The product is available to first-time buyers across the UK and applicants must have a strong track record of paying rent for at least 12 months, verified through bank statements or a letter from a registered letting agent.
The borrower must be aged 21 or over and cannot use the product to purchase new-build flats.
Expert Opinions:
Some experts have praised the product as potentially helping aspiring homeowners get on the property ladder.
However, others have noted that affordable housing is still in short supply and more significant market changes are needed.
Product Details:
The track record mortgage is a five-year fixed-rate product with a rate of 5.49% and a maximum mortgage term of 35 years.
Borrowers can take out up to £600,000 and will undergo affordability and credit checks.
Skipton has said it will ensure buyers do not pay more on a monthly basis than their current rent, and the product cannot be used with other borrowing schemes.
The mortgage is fee-free.
Commentary:
The new mortgage product from Skipton Building Society aims to help renters who have been unable to save for a deposit become homeowners.
While experts have praised the product as potentially helpful, others have noted that the issue of affordable housing remains unresolved.
The eligibility requirements include a strong track record of paying rent for at least 12 months, which can be verified through bank statements or a letter from a registered letting agent.
The mortgage is a five-year fixed-rate product with a rate of 5.49% and a maximum term of 35 years, and Skipton has said it will ensure buyers do not pay more on a monthly basis than their current rent.
