New Track Record Mortgages could be a lifeline for renters!
There are lots of people who currently rent their homes, pay their rent on time, and are unable to get on the property ladder for the only reason – they don’t have a deposit. They may be unable to save due to the outgoings they currently have on rent, and aren’t in the fortunate position of having family money.
If this sounds like you, there has been some very good news recently that Skipton Building Society have just launched a new product, the Track Record Mortgage. This doesn’t require a deposit, and instead looks at your rental amount and track record. So if you’ve been paying yours on time, and you fit their criteria, this could be the ideal time to move from renting into property ownership.
Criteria
There are some criteria that you must fit to be able to take up this mortgage. These include:
- You need to be a first-time buyer and 21 or older when you apply (this applies to all applicants, if it’s a joint application).
- You need to have already been renting for at least 12 consecutive months out of the past 18.
- You need to be up to date on all rental payments during this period. Proof of this will be required, which could be through your bank statements or confirmation from your letting agent.
- You need to be up to date for at least 12 consecutive months out of the past 18 on household bills, such as council tax, electricity, gas, water. Again, you’ll need to be able to prove it.
You also can’t:
- Have missed any other repayment commitments over the past six months – such as Netflix subscriptions, mobile phone repayments, or any other credit. Any defaults will show on your credit report, so they will know!
- Buy a new-build flat. These mortgages aren’t allowed for that, although other mortgages will allow you to do this with a deposit.
- Ask for a mortgage that will have a higher monthly payment than your current rent.
What if I live with someone else?
They’re calling this household-to-household – if the same people live together in rental, and want to purchase together, as long as they fit the above criteria they can go ahead.
If two people rent together, but only one wants to purchase, they wouldn’t fit the criteria unless that person has paid the rent and bills on their own and can prove it.
If two people rent separately and want to purchase together, and they can prove they personally paid all the rent and household bills for each rented property, they can go ahead. The maximum mortgage payment they can pay will be the combined rental payments for both rental properties – which means they may be able to afford a lot more.
This could be really exciting news for renters, and could allow a lot of people to finally own their own home.
If you’re interested and you think you might be eligible, please do give us a call to see if we can help. We could help you purchase your dream home at last!
At Pendle Hill Properties, we work with carefully selected partners who uphold the same high standards of customer service as we do. With the products on offer from mortgage lenders always changing, we work with Fairstone to offer the best solution. They can provide key areas of mortgage advice.
We appreciate finding the right mortgage for you and your individual circumstances is paramount. To talk to us about your mortgage options, call Sophia on 01282 965 425 or email info@pendlehillproperties.co.uk.
We’re a family-run firm, at the heart of the community, and we’re friendly, open and honest. We hope you’re on the journey to find your dream home, and if we can help in any way, just get in touch!
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