Up to 99% Loan to Value Flexible Family Assist mortgage

Family Assisted Mortgages

Here at the Tipton, we understand that getting on the property ladder can be hard. But, with the added boost from a family member, they can help you get a mortgage with no deposit. To help overcome these challenges, we have introduced our Family Assist Mortgage.
Our flexible family assist mortgage allows you to borrow 99% of the purchase price or property value (whichever is lower), with the option of a borrower deposit.

In order to apply for the mortgage, we will need 20% of the purchase price or property value (whichever is lower) as security. This 20% security can be made up of a maximum of 10% deposit from your own funds, plus Mum, Dad or relatives can help boost your position on the property ladder, by either accepting the remaining percentage as charge on their own property, or by depositing it into our Family Assist savings account, this is commonly known as a family savings mortgage.

Savings Deposit Option
Your parents or relatives can help you to buy your home by placing the difference between your deposit and 20% of the value into our Family Assist savings account. They are also free to withdrawn their money once you have reached 80% loan to value on your mortgage (you own 20% of the property's value).
We've found that this option is great for family members who want to help you buy your 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 borrowing against your family members property. To allow a mortgage with no borrower deposit, we would need to secure the difference between your deposit and 20% of the total amount you're looking to borrow against a family members' property. To qualify for this option, the family member assisting you would need to own at least 40% of their own home.
It's important to note 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 family member’s property, at your expense. You'll also need to pay for your own legal costs and your family member’s independent legal advice. We will need your 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 family member. The amount you can borrow is determined by your income and status only.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Flexible Loan to Value

Our Family Assist products require us to have 20% security, this is calculated on the purchase price or property value (whichever is lower). This is usually taken in the form of a collateral charge on a family members property or them depositing into our specified savings account.

With our Flexible Family Assist product, the 20% security can be made up of borrower deposit, up to a maximum of 10% of the purchase price or property value, and either the collateral charge or savings options detailed above, in any ratio best suited to you!

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Mortgage amounts

There is a minimum mortgage amount of £75,000 which increases to £250,000 for properties located outside the M25 corridor.

The maximum amount you can borrow is £250,000, increasing to £400,000 for properties within the M25.

The maximum loan to value is 99%.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Mortgage repayment terms

The minimum repayment term is 5 years and the maximum repayment term is 35 years.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Early Repayment Charges

Up to 10% of the original mortgage amount can be overpaid each year without charge. If the mortgage is redeemed or switched to another product during the fixed rate product term then an Early Repayment Charge will apply.

The Early Repayment Charge will be calculated at:

• 6% until 30 November 2020;
• 5% until 30 November 2021;
• 4% until 30 November 2022;
• 3% until 30 November 2023;
• 2% until 30 November 2024; and
• 1% until 30 November 2025.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Mortgage tariff of charges

The mortgage tariff of charges details the various fees and charges that may apply during the term of your mortgage.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Representative example

A mortgage of £115,000 payable over 22 years on a a fixed rate until 30 November 2025, currently 3.09% and then our SVR, currently 4.94% for the remaining term would require an initial payment of £610.59 followed by 62 monthly payments of £600.86 and 201 monthly payments of £689.72.

The total amount payable would be £177,582.63 made up of the mortgage amount plus interest (£61,497.63) with a mortgage valuation fee of £635 on the purchase property, a mortgage valuation fee of £175 on the family members’ property, legal fees of £300, a telegraphic transfer fee of £25 and mortgage exit fees of £125

The overall cost for comparison is 4.3% APRC representative.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.