Good news! Our Track Record mortgage is now available to more people. If your client hasn't owned a property in the last 3 years in the UK they could be eligible.
What are we offering?
- Up to 100% LTV mortgage for current renters, who haven't owned a property in the last 3 years and can demonstrate a track record of affordability of ALL monthly rent for a minimum of 12 months in the last 18-month period
- If there is a deposit, we are happy to consider even if it’s gifted. If the client has a deposit of 5% or more, they should seek our standard products as Track Record is designed for >95% lending
- The monthly mortgage payment must be equal or lower than the average of the last 6 months rental cost – e.g. if the average rent over the last 6 months is £800, the mortgage payment must be £800 or lower
- Max term 35 years
- Max LTI 4.49 or 4.75 if income >£100k
Please note that this product may be withdrawn at any time and without notice.
Who is eligible?
Your clients might be eligible for this product if:
- Each client hasn't owned a property in the UK in the last 3 years
- Each applicant is aged 21 or over
- If they have a deposit, it must be less than 5% of the purchase price
- In addition to standard lending policy relating to missed payments and adverse credit, each applicant must have no missed payments on debts / credit commitments (e.g. mobile phone bill) in the last 6 months
- They are looking to borrow up to £600,000
- They're not looking to buy a new build flat
- They have proof of having paid rent for at least 12 months in a row on a UK property, within the last 18 months
- They have 12 months experience paying all household bills within the last 18 months
- They are not looking to buy a property in Northern Ireland.
Sole applicants:
- They've paid all rent for 12 months in a row, within the last 18 months. Depending on circumstances, we may also want to see proof of payments of household bills.
For joint applicants (up to 4 people):
- You can prove that all rent has been paid either by one applicant or collectively for 12 months in a row, within the last 18 months
- If you've been renting separately you can prove that you have paid all your rent
- In either case we may also want to see proof of payments of household bills.
How much could your client borrow?
To work out how much your client could borrow, you will need to complete the two following calculators.
Step 1 - Complete our Track Record Calculator
Firstly, the Track Record Calculator will give you an initial indication of how much they might be able to borrow based on their average rental payments over the last 6 months.
Step 2 - Complete full Affordability Calculator
Then you will need to complete the full Affordability Calculator. This will give us a more detailed view of your client's situation and how much we could potentially lend based on their current income and outgoings.
The maximum your client may be able to borrow will be whichever amount is lower – the loan amount based on the Track Record Calculator, or the loan amount through the Affordability Calculator.
Example:
Amount from Track Record Calculator = £250,000
Amount from Affordability Calculator = £300,000
The maximum you could borrow from us is £250,000 as this is the lower value.
The maximum loan must be determined before they move onto the decision in principle (DIP), to make sure the DIP they are given is accurate and based on the correct value.
If the process isn’t followed to determine the lower value, your client could be offered a lower maximum loan at full mortgage application.
Useful links
Frequently asked questions
They may be accepted in this case as long as they can provide evidence of at least 12 months rental payments in the UK higher than the proposed mortgage payment. If all applicants moved out more than 6 months ago, unfortunately they will not be eligible. If they rent again for a minimum of 12 months' we can consider their application in the future.
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.
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.
Yes. We accept applications for new build houses. However, we do not accept applications for new build flats >90% LTV, so the Track Record mortgage isn't suitable for someone buying a new build flat.
A new build home 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.
No. Our Track Record mortgage cannot be used in conjunction with any other schemes. This includes but is not limited to Joint Borrower Sole Proprietor, Shared Ownership, First Homes (England), Help to Buy (Wales).
No, unless they have evidence of pre-settled/settled status under the EUSS, permanent rights of residency, or indefinite leave to remain in the UK. But, if this is a joint application and the income of a VISA holder is not being used as part of the affordability assessment, they could be eligible.
Yes, as long as there is no formal tenancy agreement in place. Income from renting the room can’t be used within the Affordability Calculator.
This will not affect the maximum loan amount calculated by the Track Record Calculator. But they will need to declare the service charge in the Affordability Calculator.
No. Although the property is held in the limited company, and they may meet the first-time buyer criteria, they will not be eligible.
No. If they have plans to move abroad when applying for the mortgage, they will not be eligible.
We may be able to consider a Track Record mortgage depending on their individual circumstances, please contact us to discuss.
Yes, but we may need evidence of how the funds were accumulated to make the lump sum payments. The payments must have been made from the applicant’s own funds, with no help from anyone else.
Yes, they can apply for a Track Record mortgage. But when calculating their maximum loan, any housing benefit would need to be removed when you enter your total monthly rent into the Track Record Calculator. For example, if their rent for the last 6 months is £500 but they have received £150 monthly housing benefit, you would use £350 in the Track Record Calculator. Then when you move onto the Affordability Calculator, regardless of whether the housing benefit will remain on completion of the mortgage or not, you must exclude it from their income.
Yes, they can apply for a Track Record mortgage. But when calculating their maximum loan, any housing benefit would need to be removed when you enter their total monthly rent into the Track Record Calculator. For example, if their rent for the last 6 months is £500 but they have received £150 monthly housing benefit, you would use £350 in the Track Record Calculator. Then when you move onto the Affordability Calculator, regardless of whether the housing benefit will remain on completion of the mortgage or not, you must exclude it from their income.
Yes, they can apply for a Track Record mortgage as long as they can clearly show both:
- the rent part of the payment, for calculating the maximum loan amount in the Track Record Calculator (i.e. tenancy agreement or letting agents letter (needs to be Association of Residential Lettings Agents (ARLA) registered, or suitable alternative, e.g. NAEA, NACA)
- if needed, the utilities part of the payment is paid at full market rates with no discounts.
Where two individual people (or households) are paying their rent without the help of anyone else, and meet all other eligibility criteria, we may allow them to buy together. In this scenario, we will allow the rents to be merged as the amount being entered into the Track Record Calculator.
The maximum amount we will lend is 100% of whichever is lower, the purchase price or the valuation/home report, up to £600,000. If the purchase price is more than the home report figure, we could lend the valuation amount on the home report, and they can make up the difference using their own funds.
Yes. But regardless of whether they’ll continue to receive board payments after they have bought the property, it must not be included as income in the Affordability Calculator.
As long as they can evidence, if required, that they have been solely responsible for all rent for 12 months in a row within the last 18 months, we may consider a sole mortgage. It is also acceptable in this scenario to add a non-contributor on to the mortgage if they wish, provided they also meet all the eligibility criteria.
Yes, as long as the applicants can provide evidence that they are the people that have been solely responsible for the rent for 12 months in a row within the last 18 months.
