Couple now paying less than their rent after discovering mortgage scheme on TikTok
Let's be honest, buying a home in the UK is far from easy.
When Conroy and Amber decided to put down roots in Manchester, the couple soon realised that saving for a deposit while living in the city for work would not be easy.
They aren't alone either, as property prices are constantly rising across the country.
In order to get your foot on the property ladder, Brits should be expected to pay an average of £244,000 – a figure which has risen by 74 percent. For example, my parents were able to secure a two-bedroom house for just over £52,000 while in their early twenties.
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Rising house prices also mean larger deposits, with anyone unable to get a loan from the bank of mum and dad needing to save for 10 years for a shot at getting themselves on the property ladder. Stashing away the cash every month isn't easy when bills are skyrocketing – but what if I told you there was another way?
And no, we're not talking about living with generous parents to bank rent, but instead a mortgage which requires no loan whatsoever.
This is exactly what Conroy, 32, and Amber, 28, did when they opted to apply for a Track Record mortgage to purchase their dream home.
'We found out about it through TikTok'
Conroy and Amber, who work as a video editor and solicitor respectively, came across a Track Record mortgage scheme advertised by Skipton Building Society on social media, which offered mortgages to customers without a deposit.
"Someone had mentioned about it on TikTok, and we enquired online," Conroy explained.
"We live in the centre of Manchester for work so actually saving for a deposit wasn’t really an option. We also couldn’t rely on money from family so we weren’t sure when or if we’d be able to get on the property ladder."
What is a Track Record mortgage?
According to Skipton's website, a Track Record mortgage is a 100 percent LTV (loan to value) mortgage, although some buyers can access the scheme with as much as a five percent deposit, which allows Brits to secure a mortgage at 4.49 times their income for little to no deposit.
In exchange, the building society asks buyers to demonstrate that their rent and bills have been paid in full for 12 months within the last 18 month period as proof of affordability.
'It’s also cheaper than our rent'
The idea of taking out a 100 percent mortgage is understandably daunting to some people. However, Conroy and Amber found the entire process to be 'seamless'.
"We went from an enquiry to an agreed mortgage in principle in less than a week," he explained.
There was also 'no restrictions' on what the couple wanted when it came to finding their dream home.
"Our mortgage offer was for £300,000 and that was more than we were planning on spending. So we managed to agree a price to buy our new home and it’s amazing," he continued.
"Our mortgage rate is slightly higher than average but we will get that changed in 5 years and we’re going to be overpaying so it’s been great. It’s also cheaper than our rent."
Who is eligible for a Track Record mortgage?
In order to be eligible for a Track Record mortgage, applicants must be:
- Aged 21 or over
- Be looking to borrow no more than £600,000
- Have not owned a property in the UK within the last three years
- Have 12 months' experience paying household bills and rent within the last 18 months
- Not be looking to buy a property in Northern Ireland or the Isle of Man.
"For many renters, getting onto the property ladder remains a significant challenge. While they're often already meeting housing costs comparable to a mortgage, the combination of high rents, rising living costs and the need to save for a deposit can make homeownership feel out of reach," Jen Lloyd, Head of Mortgage Products and Propositions at Skipton Building Society, told LADbible of the decision to launch the scheme.
"That's exactly why we launched Track Record. We believe people who have consistently demonstrated they can manage regular rental payments should have a fair opportunity to become homeowners, even if saving for a deposit has been difficult.
"By recognising a strong history of rental payments and offering up to 100 percent loan-to-value, Track Record provides an alternative route onto the property ladder for those who have already shown financial responsibility."
Since launching the scheme, Skipton has helped more than 1000 renters secure their first property, adding that Track Record mortgages are a 'powerful example of how innovation can help remove barriers and support more people in having a place to call home'.
As for Conroy and Amber, the couple recommend the scheme to other renters hoping to get on the property ladder.
"It’s nothing to be worried about and it’s not some weird scheme," he added. "It’s been fantastic."
Brenna Cooper