Can Renters Really Skip the Deposit? A Look at Skipton’s Track Record Mortgage

Getting on the property ladder has never been easy, but for many renters today, it feels almost impossible. You pay your rent on time every month often more than what a mortgage would cost but saving a deposit? That’s a whole other challenge. That’s where Skipton Building Society’s Track Record Mortgage comes in.

It’s a product that’s made headlines and raised a few eyebrows but also offers a genuine lifeline to first-time buyers struggling with the deposit hurdle. Let’s break it down.

What’s the Big Idea?

Skipton’s Track Record Mortgage is the first 100% mortgage in the UK that doesn’t require a guarantor. Instead just needs proof that you’ve been paying rent reliably. If you’re a first-time buyer who has been renting for at least 12 months, and you’ve never missed a rent or credit payment during that time, you could be eligible to borrow the full purchase price of a property¹.

This mortgage is Skipton’s way of recognising that renters often have the financial discipline to afford homeownership but they’re just blocked by the upfront cost of a deposit. And with average deposits running into tens of thousands of pounds, that’s a major barrier for a lot of people.

Who Can Apply?

To be eligible, you’ll need to meet a few conditions¹:

Be 21 or older
Be a first-time buyer (never owned property in the UK or abroad)
Have paid rent on time for 12 consecutive months
Have a clean credit history with no missed payments in the last six months
Be buying a property worth £600,000 or less (no new-build flats allowed)
Choose a 5-year fixed rate mortgage

Skipton will also carry out a full affordability check, so even if you’ve been paying high rent, they’ll still look at your broader finances to make sure a mortgage is sustainable for you.

What’s the Catch?

Like any 100% mortgage, there are some risks and things to be aware of¹.

1. Negative Equity

If house prices fall, you could end up owing more than your home is worth. This is a risk with any low-deposit mortgage, but particularly with 100% loans.

2. Ongoing Costs

When you rent, your landlord deals with repairs and maintenance. As a homeowner, those costs become yours. Skipton does assess affordability with this in mind, but it’s still something buyers need to plan for.

3. Property Type Limits

You can’t use this mortgage to buy a new-build flat, likely because these types of properties are considered higher risk in the lending world.

Why It Matters

The Track Record Mortgage is part of a growing push to rethink affordability. Instead of looking just at what’s in your savings account, lenders like Skipton are starting to ask: Can you handle the monthly payments?

If you’ve been paying £1,200 a month in rent for the last year, why wouldn’t you be able to handle a £1,000 mortgage?

It’s a simple idea that makes a lot of sense and for renters who feel like the system is stacked against them, it’s a refreshing change.

Final Thoughts

Skipton’s Track Record Mortgage isn’t for everyone. It’s still a mortgage, with all the commitment that comes with it. But if you’re a first-time buyer with a solid rental history and no deposit, it could be your chance to finally own a home.

Could this help someone you know?

If you are a parent or grandparent who has been looking for ways to help your family get a foot on the property ladder, this could be a game changer.

As always, we are here to help. If you would like to discuss this No Deposit Mortgage or explore whether it might be the right fit for your child or loved one, just get in touch. As advisers, we have exclusive access to this mortgage and can guide you through the process step by step.

Sources

Skipton Intermediaries (2025). Track Record Mortgage. Available at: https://www.skipton-intermediaries.co.uk/criteria/track-record [Accessed 28 May 2025].

Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

All the information in this article is correct as of the publish date 5^th June 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

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