At the Tipton, we know how hard it is for some of your clients to get a foothold on the housing ladder due to ever-increasing property prices and the need for large deposits.
Our Standard Family Assisted mortgage allows your client to borrow 100% of the purchase price or property value (whichever is lower), with no borrower deposit. Mum, Dad or relatives can help boost your clients position on the property ladder, by either accepting a 20% charge of the purchase price or property value (whichever is lower) on your clients new home on their own property, or by putting 20% of the purchase price or property value (whichever is lower) into our Family Assist savings account, this is commonly known as a family savings mortgage.
Our Flexible Family Assist incentive requires a minimum deposit of 1% from the applicant (maximum deposit 10%). The remaining security, up to the value of 20% can then be made up of either our collateral charge option or our savings deposit option. For instance, the applicant provides a 1% monetary deposit and the remaining 19% is then made up of the collateral charge option or our savings deposit option.
Savings Deposit Option
Your clients parents or relatives can help your client to buy their home by placing 20% of the purchase price or property value (whichever is lower) into our Family Assist savings account. They are also free to withdraw their money once your client has reached 80% loan to value on their mortgage (they own 20% of the property's value) at the time they are looking to withdraw. We've found that this option is great for family members who want to help clients buy their home, while gaining interest on their savings.
Collateral Charge Option
A collateral charge can sound scary. In reality, it is simply a way for the Society to secure your clients borrowing against their family members property. To allow a mortgage with no borrower deposit, we would need to secure 20% of the purchase price or property value (whichever is lower) of your clients new home against a family members' property. To qualify for this option, the family member assisting your client would need to own at least 40% of their home.
It's important to not that the Society will act on this collateral charge as a last resort, and it would only be enforced after all other options have been explored.
This option is great for those whose parents, or family members wish to help boost their position on the property ladder, but do not have the cash to gift.
Please note: A standard valuation will need to be completed on both the purchase property and your clients family member’s property, at your clients expense. Your client will also need to pay for their own legal costs and their family member’s independent legal advice. We will need your clients parents or relatives written consent for us to carry out a credit check against them. However, we will not complete any income assessments or further underwriting against your clients family member.
The amount your client can borrow is determined by your clients income and status only.
Please use the buttons below to view our full residential mortgage criteria and mortgage product guides.
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