Skipton’s 100% LTV Loan Attracts £91.5M in Applications Over One Year

Skipton Building Society’s 100% loan-to-value mortgage, known as the Track Record loan, has garnered £91.5 million in applications since its launch a year ago. This mortgage product allows tenants over 21 with a strong rental payment history to borrow the entire cost of a property on a five-year fixed rate, with a maximum term of 35 years.

Scotland led the uptake, accounting for 15% of applications, followed by the North West at 14% and the South East at 12%. The average purchase price for properties was £152,015. While many brokers welcomed the initiative, others cautioned that these homeowners might face negative equity if property prices rise. Currently, zero-deposit products make up less than 0.5% of UK home loans. Jen Lloyd, Skipton’s head of mortgage products, emphasized the need for innovative solutions to help renters transition to homeownership amidst escalating rents and living costs.