100% LTV Family Assist [PDT07]
Discounted for term
This product may be withdrawn at any time.
Product key features
Family Assist mortgages
With our 100% Family Assist mortgage your client will not need to have a deposit, however additional security will be needed in the form of a collateral charge against a family members' property. This means their mortgage will be secured against both the purchase property and the family members' property.
This charge will be 35% of the amount your client is looking to borrow, and because of this, the family member must have at least 40% equity in their home.
A standard valuation will be needed on both the purchase property and the family members' property, this will be at your clients expense. Your client will also need to pay for their own legal costs and their family members' independent legal advice. This is needed for us to consider the mortgage.
We will need the clients family members' 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.
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 3.24%.
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.