Case Study: 100% Mortgage Makes Homebuying Dreams a Reality

by Megan Addy – Director | Independent Mortgage & Protection Adviser @ Prism Mortgage & Protection Advice

Have you ever felt trapped in the rental cycle, dreaming of your first home but unsure how to make it a reality? 

Skipton Building Society’s announcement of their ‘Track Record Mortgage’ product in May 2023 created a beacon of hope for hundreds of thousands of potential First Time Buyers who were stuck in the rental cycle; Those who were able to pay their rent and the associated costs, but with very little left over to save for a house deposit. 

The Track Record Mortgage offers up to 100% Loan To Value (LTV) for first time buyers with a track record of paying rent, to help them into their first home.

In this case study I’ll explain how I helped one young couple step onto the property ladder years sooner than expected, all due to Skipton Building Society’s Track Record Mortgage. 

Customer Background:

The newlywed couple had been planning to start saving for a deposit when Skipton Building Society announced their Track Record Mortgage. Having seen the extensive media coverage, they realised they met all the criteria: 

• You haven’t owned a property in the UK in the last 3 years 
• You are aged 21 or over 
• You have no missed payments on debts / credit commitments in the last 6 months 
• You’re not looking to buy a property in Northern Ireland. 
• 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
• You have 12 months experience paying all household bills within the last 18 months*

* All criteria correct as of 30/04/2024

Keen to get confirmation of their eligibility so that they could start house-hunting, they went online to apply for an Agreement In Principle themselves. 

Challenges and Objectives:

Frustratingly, the Agreement In Principle was declined and they were left with no explanation why. 

Reluctant to accept a “computer says no” decision and having seen my videos on TikTok about the Track Record Mortgage, they reached out to me to see if I could help. 

Their ultimate objective was to secure a Track Record Mortgage so that they could move out of rented accommodation and purchase their first home. They felt that the opportunity to get on the property ladder years sooner than they had expected was one which was too good to miss. 

The Solution:

• My first step was to leverage my longstanding relationships within the mortgage industry, starting with a direct line to Skipton Building Society’s Business Development Manager (BDM). 
• After a thorough review of the couple’s application with the BDM, we pinpointed the discrepancy that led to the decline – a minor yet pivotal keying error. This kind of error isn’t uncommon, but its implications can be significant, underscoring the value of a meticulous professional review. 
• Armed with this insight, I prepared a new Agreement In Principle application, ensuring every detail reflected the couple’s financial reliability and eligibility for the Track Record Mortgage and personally overseeing the submission process. 

The new Agreement In Principle was approved, giving my customers the much anticipated green light to start the exciting bit – viewing properties! 

The Outcome:

There were several positive outcomes for my customers as a result of them contacting me:

1. The resolution of the initial application error resulted in the clients securing a 100% mortgage.  This was made possible by my connections with decision-makers, who helped to identify the error; 
2. They had an offer accepted on their ideal home. Although prior to contacting me they had decided to attempt to apply themselves, they chose to use my expert knowledge and guidance to help them through the full application process, which went smoothly; 
3. Protecting against the unexpected. The customers had their futures as newlyweds pinned on their new home, so it was important to them both to ensure it was sufficiently protected. Having had a detailed discussion around their protection needs, I arranged Life Insurance and Income Protection for both customers. I also recommended a comprehensive Buildings & Contents policy. 

Conclusion:

This case study highlights the importance of seeking professional advice and guidance.  Had my customers accepted the initial ‘Decline’ decision from Skipton Building Society’s online Agreement In Principle and not sought my help, the opportunity would have been missed and they would not now be homeowners, nor would they be well protected. 

Leveraging years of expertise, an extensive network of professional contacts, and a proactive approach, we offer tailored advice that meets the distinct needs and situations of our clients — both now and at every future juncture where our guidance is needed. 

Book your free initial consultation here to talk with us about your eligibility for Skipton Building Society’s 100% mortgage for first time buyers and home movers.