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Track Record Mortgages: An Option for Renters Aiming to Own

Owning a home is a significant milestone but can seem unattainable for many, especially renters who dream of converting their monthly rental payments into mortgage repayments. This is where Track Record Mortgages step in.

This offers a path to homeownership designed specifically for those who have not owned property in the last three years, be it UK residents or international hopefuls returning to the market or looking to access the property ladder for the first time.

One of the standout features of Track Record Mortgages is the potential for 100% Loan-To-Value (LTV) lending. This is particularly appealing for renters desiring to become first-time buyers and struggling to save for a large deposit, as well as former homeowners currently renting who wish to re-enter the property market.

west London homes in autumn

Eligibility Criteria for Prospective Homeowners

To qualify for a Track Record Mortgage, prospective borrowers must meet certain conditions that testify to their financial responsibility and readiness to take on a mortgage:

  • Non-Property Ownership: Importantly, each client must not have owned any property, whether in the UK or elsewhere abroad, within the last three years.

  • Age Requirement: Each applicant needs to be 21 years of age or older.

  • Rental History: Applicants must have documented proof showing at least 12 consecutive months of rent payments within the preceding 18 months.

  • Household Bill Management: Applicants must demonstrate experience in managing household bills, with no lapses for a minimum period of 12 months within the last 18 months.

  • Credit Commitments: Each applicant must have no missed payments on any debts or credit commitments in the last six months.

  • Mortgage Affordability: The proposed monthly mortgage payment must not exceed, and ideally should equal, the average rent paid over the previous six months.

  • Deposit Limitation: Lastly, the deposit for the property should be less than 5% of its total value.

Lending Up to 100% LTV

In essence, Track Record Mortgages recognise the fiscal discipline in consistent rent and bill payments and how this acts as a credible track record. This product affords these individuals the opportunity to channel that reliability into obtaining a mortgage without the burden of a large deposit.

For renters looking to pivot from paying someone else's mortgage to investing in their future through homeownership, meeting the eligibility criteria for a Track Record Mortgage could open the door to purchasing their first property.

Key Takeaways:

  • Possible 100% LTV lending options.

  • Not just for first-time-buyers.

  • Focuses on financial history and reliability of applicants

  • Lessens the burden of large deposit.

Does this mortgage product sound like a viable option for your circumstances? Talk to us today to find out more about Track Record Mortgages and if this is the right option for you.


Approved by The Openwork Partnership on 14/03/2024

Providence Global Finance is a trading name of Just Mortgages Direct Limited which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited, which is authorised and regulated by the Financial Conduct Authority.​


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