100% LTV Family Assist [PDT08]
Discounted for term
This product may be withdrawn at any time.
Product key features
Family Assist mortgages
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.
In response to these challenges, we introduced our Family Assist mortgage which lends at 100% LTV.
Your clients have two options for securing the mortgage with the help of a family member. We can secure the mortgage with a collateral charge against a family member’s property worth 20% of the value of the loan. Alternatively, a family member can pay 20% of the loan value into our Family Assist saving account and accrue interest.
Collateral Charge Option
A collateral charge provides a sensible alternative for parents and family members who want to help relatives onto the property ladder, but who are not in a position to gift a cash sum.
To secure the 100% LTV mortgage, we would use 20% of the value of the loan against the family member’s property, as long as the property has 40% equity at the point of application. Exercising the collateral charge would be a last resort, enforced only when all other options for maintaining repayments had been explored.
A standard valuation will be needed on both the purchase property and the family member’s property, this will be at your client’s expense. Your client will also need to pay for their own legal costs and their family member’s independent legal advice. This is needed for us to consider the mortgage.
We will need the client’s family member’s written consent for us to carry out a credit check against them. They will not be included in affordability assessments and no further income assessments will be carried out against them.
Savings Deposit Option
After listening to feedback from our broker network, we now offer a 20% savings deposit option for parents or family members looking to help relatives onto the property ladder.
The savings deposit option is designed for family members who want to earn interest on their deposit, rather than gifting it to the relative. On depositing 20% of the full loan amount into our Family Assist savings account, the sum would accrue interest at our current rate and could be withdrawn once the secured property reached 80% LTV.
There is a minimum mortgage amount of £75,000 increasing to £250,000 for properties located within the M25 corridor.
This product offers a maximum mortgage amount of £250,000 increasing to £400,000 for properties located within the M25 corridor.
The maximum loan to value this product offers is 100% of the purchase price.
Interest rate floor
The interest rate on this product cannot fall below 2.99%.
Mortgage repayment terms
There is a minimum repayment term of 5 years and a maximum repayment term of 35 years.
Early Repayment Charges
No Early Repayment Charges apply to this product.
We received an enquiry from a broker for his clients Mr and Mrs W who were first time buyers, but renting privately in London was compromising their ability to save for a deposit.
Mr W’s parents who were mortgage free were able to offer their own residential property as additional security for the mortgage, their preference to actually gifting a cash sum to their son to finance a deposit. This allowed them to secure a £280,000 mortgage on a two bedroom apartment.
Here to help you...
- Discuss your potential decision in principle
- Provide you with updates on your existing decision in principle
- Explain our lending criteria
- Help you understand our Family Assist product
Your home may be repossessed if you do not keep up repayments on your mortgage.