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Most Parents would like to see their children settled in their own home. But with high property prices and mortgages increasingly hard to get, it can seem like an impossible prospect. With these things in mind we have created the Family Mortgage Collection.
We've brought together a collection of mortgages, listed below, which involve the family working together. From help with the initial deposit and affordability, to reducing monthly repayments, we have a mortgage to make getting on the housing ladder more achievable.
This mortgage enables parents to help their children obtain an affordable 95% mortgage. The buyer needs a minimum 5% deposit, whilst the parents will need to deposit up to the equivalent of 20% of the property value in a linked savings account for, usually, 5 years, where it will earn a healthy rate of interest.
Family Offset Mortgage
The Family Offset Mortgage allows a family member to set up a savings account linked with the borrowers’ mortgage. This enables the interest that would have been earned on the savings account to be offset against the mortgage loan. The result of this tax-efficient way of managing money is either the mortgage being repaid more quickly or, over time, the monthly payments reducing. Savers have full access to their savings and can add to the balance or make withdrawals at any time.
Family Shared Mortgage
With this type of mortgage family members can get together and buy a property jointly, enabling total joint income, less any debts, to be used to assess affordability. Many parents view this kind of arrangement as a long term investment, as all parties to the mortgage benefit from any gain in the property's value.
Family Pledge Mortgage
The Family Pledge Mortgage gives parents' the opportunity to offer assurance that – should things go wrong – they will help. Whilst the parents' names don’t appear on the mortgage deeds they guarantee to make up any shortfalls in the mortgage repayments, which means that where income is not quite sufficient to cover the mortgage needed, we can be more flexible on the amount we can lend.
If you have any questions or would like to talk through any of our mortgage products, please contact our Mortgage team on 01858 412610 - they will be happy to help.
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