Skipton Building Society has eased the affordability criteria on its Track Record Mortgage criteria more and has opened the product to buyers of shared ownership homes and new build flats.

The 100% LTV product takes into account how much the applicant was paying in rent when calculating how much they can afford to pay in monthly mortgage payments.

Skipton has extended the maximum term from 35 to 40 years.

The more relaxed affordability criteria means that, in certain circumstances, applicants will be granted mortgages where their payments are up to 120% of their previous monthly rent.

New build flats are now accepted and there is a separate product covering shared ownership properties.

The rate for the standard Track Record Mortgage is 5.49% and for the shared ownership alternative is 5.6%.

Head of mortgage products and propositions Jen Lloyd says: “At an increasingly difficult time for those aiming to get onto the property ladder, we remain committed to finding innovative solutions to support them. 

“Our Track Record Mortgage, which launched in May last year, was designed to help aspiring homeowners who have a strong history of paying rent and bills but due to rising costs are unable to save for a house deposit.

“And since its launch we have worked hard to make various policy changes to open those doors for even more, listening to customer feedback and monitoring how the product is used. 

“By increasing the maximum term from 35 to 40 years, allowing new building flats, introducing a shared ownership option and adopting a more flexible approach to affordability, we’re removing some of the barriers people faced when wanting to use Track Record. 

“We believe that these updates will have a real impact for those who are wanting to have a home of their own.”

Coreco managing director Andrew Montlake says: “These changes to Skipton’s Track Record mortgage product show just how determined an innovative lender can be to breathe oxygen into the lifeblood of the housing market.

“Allowing borrowers who can afford it to borrow more than their current monthly rental payment is a good step forward, whilst offering this product on New Build Flats could be seen as a game changer for many.

“While this product will not suit everyone, and professional advice should always be taken before taking out a mortgage, there is no doubting Skipton’s commitment to help more first-time buyers get onto that first rung of the housing ladder.”