Skipton Building Society is cutting rates across its mortgage portfolio, including a significant reduction on its headline-grabbing 100% Track Record Mortgage – a product designed to help renters onto the housing ladder without the need for a deposit.
From today the interest rate on Skipton’s Track Record Mortgage will drop by up to 0.40 percentage points to its lowest level since the product launched in May 2023.
The 5-year fixed rate without cashback will fall from 5.49% to 5.09%, while the version offering £1,000 cashback will reduce from 5.59% to 5.24%.
The move comes amid mounting evidence that a large proportion of renters are stuck in limbo, unable to transition to homeownership despite strong payment histories.
FIRST-TIME BUYER WOES
Research published this week by the Building Societies Association (BSA) found that 43% of renters had expected to own a home by now but have failed to do so.
That figure rises to 59% among renters aged 25 to 44, while a third in that age group say they now believe they will never be able to buy.
Skipton’s own Home Affordability Index paints a similarly bleak picture: nearly 80% of aspiring first-time buyers lack sufficient savings for a deposit, and nine in ten cannot afford a typical first home in their local area.
Around 40% of renters are now spending more than 45% of their income on housing costs, eroding their ability to save.
HOME OWNERSHIP DREAMS
Jen Lloyd, Head of Mortgage Products and Proposition at Skipton, says: “Research on renters from the BSA and through Skipton Group’s own Home Affordability Index highlights just how many aspiring homeowners are continuing to be held back by the challenge of saving for a deposit.
“This needs to change. Too many renters who expected to own a home by now are still unable to take that first step onto the ladder. This is not because of a lack of commitment, but because saving for a deposit remains one of the biggest hurdles.
“Skipton’s Track Record Mortgage was designed specifically to help tackle this challenge, by enabling renters with a strong history of rent payments to step onto the property ladder without needing a deposit.
“With today’s rate reduction bringing Track Record to its lowest level since launch, we’re making it even more accessible for renters to realise their homeownership ambitions. We want to continue to offer innovation that truly reflects the realities people are dealing with today.”
EASING AFFORDABILITY
The rate cuts come at a time when broader affordability pressures are easing slightly. Mortgage pricing has gradually fallen in recent months, with the lowest two-year fixed deals now below 4%, as markets anticipate further cuts to the Bank of England’s base rate later this year. However, housing supply constraints and continued wage-to-price imbalances mean first-time buyers are still struggling to gain a foothold.
Skipton is part of the Skipton Group, which also owns the Yorkshire-based Connells estate agency chain.
