Skipton Building Society will cut its 100% Track Record mortgage to the lowest level since it was introduced and launch sub-4% home loans, among a range of rate reductions.  

The mutual’s no-deposit home loan, which was launched with a 5.49% rate in May 2023, will fall by 40 basis points from Monday. 

This will see its: 

• Track Record — five-year fix, with no cashback cut to 5.09%, from 5.49% 

• Track Record — five-year fix, with £1,000 cashback cut to 5.24%, from 5.59% 

The building society adds that this product has received over £296m in applications since it was introduced. 

The move comes as regulators, under government pressure, loosened guidelines earlier this month, allowing more underwriting at over 4.5 times a buyer’s income, in a bid to allow tens of thousands more first-time buyer home loans. 

Chancellor Rachel Reeves said this would lead to an extra 36,000 FTB mortgages over the coming year.   

The Financial Conduct Authority plans to ease mortgage regulations further, which may include formal rules to allow rental payments to be included in home loan assessments. The regulator’s latest mortgage review is expected in the autumn.  

Skipton Building Society head of mortgage products and proposition Jen Lloyd (pictured) says: “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.” 

The mutual will launch other rate reductions, which include sub-4% loans, next week. Highlights include: 

• Two-year purchase fixes, at 60% loan to value, with a £1,495 fee and no cashback at 3.95%, from 4.03% 

• Two-year remortgage fixes, at 60% LTV, with a £1,495 fee and no cashback at 3.99%, from 4.06% 

The lender adds that its delayed start range of home loans, which offers borrowers no mortgage repayments for the first three months, will include two-year fixes, at 90% LTV, with no fee and no cashback at 4.84%, from 4.89%.