Track Record Mortgages Explained
Are you a first-time buyer who is currently renting and struggling to save up for a deposit?
Look no further than our exclusive offering of up to 100% LTV mortgage! We understand the challenges that come with buying your first property, which is why we designed this product to cater specifically to those who can demonstrate a track record of affordability of ALL monthly rent and household expenditure for a minimum of 12 months in the last 18-month period.
Don’t worry if you don’t have a deposit saved up yet – we are happy to consider gifted deposits. However, if you do have a deposit of 5% or more, our standard products may be more suitable for you. Our Track Record product is tailored for lending above 95%.
We also understand that affordability is crucial when it comes to buying a property. That’s why we ensure that the monthly mortgage payment must be equal to or lower than the average of the last 6 months rental cost. For example, if your average rent over the last 6 months is £800, your mortgage payment must be £800 or lower.
Our offering comes with a maximum term of 35 years and a maximum 4.49x LTI. So if you’re a first-time buyer currently renting, with a solid track record of affordability and looking for a mortgage, we’ve got you covered. Contact us today to find out more about how we can help you get on the property ladder.
Am I Eligible for a Track Record Mortgages?
You will be eligible for a life time mortgage if:
- Are a first-time buyer
- You are aged 21 or over
- If you have a deposit, it must be less than 5% of the purchase price
- Each applicant must have no missed payments on debts or credit commitments (such as mobile phone bills) in the last 6 months
- You are wanting to borrow up to £600,000
- You must meet the household-to-household criteria (see below)
- You are not looking to buy a new build flat
- You have proof of paying rent for at least 12 months in a row within the last 18 months
- You have 12 months of experience paying all household bills.
What does household-to-household mean?
Household-to-household means that the people who have been renting the property and applying for the mortgage are the same.
If you’re applying for the mortgage alone, you need to have covered all rental and household expenditure payments for 12 consecutive months within the last 18 months.
If you’re applying with joint applicants (maximum of 4 per application), you’ll need to show evidence that these payments have been made either collectively or wholly by one applicant.
If you’ve been renting separate properties, you’ll still be eligible as long as each applicant can show that they’ve covered their entire rental and household expenditure payments individually. In this case, when calculating the maximum loan amount based on the average rental payment over the last 6 months, the combined rental payments can be used.
To get your quote for a Track Record Mortgage – contact a member of our team today!
FAQs about Track Record Mortgages
How will I know if I am not eligible
You may not be eligible for a track record mortgage if your rent over the last 6 months is lower than the new monthly mortgage payments indicated by the borrowing calculator.
If you are looking to purchase a new build flat. This is any flat being sold for occupation for the first time which has been newly built or converted within the last 3 calendar years.
Am I eligible if i've rented for more than 12 months, but moved in with family/friends less than 6 months ago to save for a deposit?
You may be accepted in this case as long as you can provide evidence of at least 12 months rental payments higher than the proposed mortgage payment. If you moved out more than 6 months ago, unfortunately you will not be eligible. If you rent again for a minimum of 12 months’ we can consider you application in the future.
What documentation is required for proof of rent payments?
12 months bank statements (full or concise) or a letter from the lettings agent (ARLA or other suitably registered lettings association e.g. NAEA, NACA) on headed paper, detailing the 12 monthly rent payments.
I pay my rent in cash, could they still be eligible?
Yes, but we will only accept a letter from an ARLA registered letting agent (or other suitably registered lettings association, e.g. NAEA, NACA) as proof of 12 months rental payments.
I've have been a guarantor / non-proprietor for someone else but never owned their own property, will I still be eligible?
Yes, but if you are still named on a mortgage as a guarantor / non-proprietor, this will need to be included as an outgoing on the affordability calculation.
I have a deposit, can they use this to reduce the amount they need to borrow?
Yes, although we don’t require a deposit for this product, they will still be eligible as long as the deposit is less than 5%.
The money can be from your own savings or gifted to you and helps reduce the monthly payment and overall borrowing amount. If the deposit is gifted, it must be from someone who meets our criteria for who can provide a gifted deposit. The person gifting them the deposit will need to complete a gifted deposit declaration form.
Can I buy a new build property?
Yes, new build houses are acceptable, however new build flats are not accepted.
A new build property is one that’s being sold for occupation for the first time, which has been newly built or converted within the last 3 calendar years.
Can I use this for buying a flat?
Yes, we will consider second hand flats, however new build flats are not accepted.
A new build flat is one that’s being sold for occupation for the first time, which has been newly built or converted within the last 3 calendar years
Can I make overpayments?
Yes. Overpayments of up to 10% of the original balance each year are permitted with no Early Repayment Charges (ERCs).
An Early Repayment Charge (ERC) will apply if you repay your mortgage early or make an overpayment that’s more than your annual overpayment allowance. This will apply during the initial 5 year fixed rate period of the Track Record mortgage.
What is the maximum loan I can borrow?
The maximum amount you can lend with a Track Record mortgage is £600,000.
Can I apply for a Track Record mortgage alongside other schemes e.g. Joint Borrower Sole Proprietor, Shared Ownership, First Homes (England), Help to Buy (Wales)?
No. Track Record mortgage cannot be used in conjunction with any other borrowing scheme.
