Track Record Mortgage

You might be eligible if you:

• Haven’t owned a property in the UK for the last three years
• Are aged 21 or over
• Are looking to borrow up to £600,000
• Are not looking to buy a new build flat
• Have proof of having paid rent for at least twelve months in a row, within the last 18 months
• Have twelve months’ experience paying all household bills within the last 18 months
• Do not intend to buy a new build flat or a property in Northern Ireland

If you have a deposit, it must be less than 5% of the purchase price.

If applying alone, you must have covered the rental and household expenditure payments by yourself for twelve consecutive months within the last 18 months.

Joint applicants will need to evidence that one applicant has made these payments either collectively or wholly.

Joint applicants who have been renting separate properties will be eligible, as long as each applicant can evidence that they have individually covered their entire rental and household expenditure payments. Your combined rental payments will be used when calculating the maximum loan amount.

You cannot use this scheme if you will own another property on completion, i.e. a buy to let. You also cannot use another scheme, like shared ownership.

There is a risk of being in negative equity; that’s when you owe the bank more than the house is worth. This can happen if house prices drop, especially if it occurs shortly after you move in, when you haven’t had sufficient time to repay much of the mortgage.

If you were in negative equity, you wouldn’t be able to remortgage to another lender. You would also be out of pocket if you sold as you would have to find additional funds to pay back the full amount you owe the bank.

There are no further restrictions on selling or on remortgaging. As long as you have sufficient equity, can pass the credit check, and you pass the affordability checks based on income and expenditure, you can move to another lender in the future.