First Time Buyer / Family support

We are built on helping borrowers make the most of their circumstances using a more personal approach, particularly across family generations. 

FAMILY MORTGAGE

With our Family Mortgages for First Time Buyers (FTBs) your clients can:

• borrow up to 95% LTV on their first property
• include family members' savings and/or property as security
• include family members' savings as security in an offset account to reduce the amount of the mortgage on which interest is charged
• choose 3 year or 5 year fixed rates.

For peace of mind we include six months unemployment cover from mortgage completion, subject to terms and conditions.

For further information please see our Family Mortgage brochure or visit our Family Mortgage product page.

We appreciate some FTB clients may not require additional family support for their mortgage, and for those we offer a variety of fixed and variable rate mortgages with a maximum 80% LTV.  For more information please see our Owner Occupier mortgages.

Joint Mortgage Sole Owner (JMSO)

Our JMSO arrangement is designed to enable family members to help support each other with affordability when applying for a mortgage. One or two owners, plus up to two family members, can join the mortgage to support the borrower.

This arrangement enables:

• borrowers to call upon support of their family members
• adult children to support their parents if their circumstances were to change

The maximum LTV is 80% for owner occupier and 65% for Buy to Let.

Our JMSO arrangement can be used on any of our standard products.

For further information please read our Joint Mortgage Sole Owner customer leaflet. 

Guarantor Mortgages

We allow guarantor mortgages on any of our owner occupier products, enabling us to consider parents’ or family members’ income to help with affordability on applications.

If the parent or family member already has a mortgage or other credit commitments, these will be taken into consideration when calculating the affordability. The guarantor must be able to prove that they can cover the guaranteed amount of the mortgage loan, as well as their own existing commitments.

The mortgages are considered subject to full underwriting and meeting our lending criteria.

 

The difference between JMSO and Guarantor Mortgages

Both of these mortgages are available to borrowers whose income falls short of fully supporting the mortgage amount but have a realistic prospect of income rises in future. In the case of JMSO, exception to this is given for older borrowers being supported by children’s income. Both JMSO and Guarantor mortgages are not available where the borrower has little or no income of their own.

Affordability is calculated differently for both mortgages:

• Guarantor mortgages - borrowing is assessed using the guarantor’s income only. The monthly payment of any outstanding mortgage is deducted from the guarantor’s income in the same way as a personal loan or credit card.
• JMSO arrangement – this is calculated over two steps. Step 1 – the non-occupiers net monthly income is calculated using our standard affordability test. Step 2 - we undertake an affordability test on the occupier’s loan amount on a joint basis using the occupier’s income and the non-occupiers income remaining after step 1.

For further information about these mortgages please contact your dedicated Business Development Manager or our Mortgage Desk.