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2.99% Family Assist 3 year discount - dual physical valuations [FA11]

Follow on rate is our SVR, currently 4.74%
the overall cost for comparison is 4.4% APRC

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Designed for first time buyers who require assistance from family to help with their first house purchase deposit.

Family Assist mortgage offers up to a 40 year term and allows the applicant to borrow up to 100% of the purchase price. By taking a collateral charge on the parents’ property we can use equity in their property to help their children get on the property ladder with smaller deposits.

Parents or grandparents can use up to 60% of the value of their own property to help their child/grandchild onto the housing ladder.

This product should be used for all properties in England and Wales. If there are local difficulties getting a valuation it may be possible to switch to an AVM desktop valuation product subject to the lower LTVs offered by this product.

  • Available to First Time Buyers only
  • No Higher Lending Charge
  • Up to 100% on applicants purchase price (overall 80% LTV with collateral charge on parent's property)

Designed for first time buyers who require assistance from family to help with their first house purchase deposit.

Family Assist mortgage offers up to a 40 year term and allows the applicant to borrow up to 100% of the purchase price. By taking a collateral charge on the parents’ property we can use equity in their property to help their children get on the property ladder with smaller deposits.

Parents or grandparents can use up to 60% of the value of their own property to help their child/grandchild onto the housing ladder.

This product should be used for all properties in England and Wales. If there are local difficulties getting a valuation it may be possible to switch to an AVM desktop valuation product subject to the lower LTVs offered by this product.

  • Initial Rate, a discount of 1.75% from our SVR for 3 years
    2.99% variable, but which will not go below a floor of 2.99% during this period.
  • Followed by our Standard Variable Rate (SVR) for the rest of the term
    4.74% variable
  • The overall cost for comparison is
    4.4% APRC
  • Maximum Loan to Value
    100% on applicants property purchase (overall 80% LTV with parents property equity) including fees
  • Application Fee
    none
  • Product fee
    £850 payable on completion
  • Early Redemption charge
    Charges will apply to any lump sum or full redemption paid over 10% of the capital balance
    1.50% in year 1
    1.00% in year 2
    0.50% in year 3
  • Available to First Time Buyers only
  • No Higher Lending Charge
  • Up to 100% on applicants purchase price (overall 80% LTV with collateral charge on parent's property)

Representative Example

A mortgage of £212,950 payable over 23 years initially at a discount of 1.75% from our Standard Variable Rate, currently 4.74%, giving a pay rate of 2.99% for 3 years and then on our Standard Variable Rate, currently 4.74%, for the remaining 20 years would require 36 payments of £1,067.95 and 240 payments of £1,244.46

The total amount payable would be £338,913.60 made up of the loan amount plus interest (£124,166.60), valuation fee on purchase property (£410), product fee (£850), solicitors fees (£312), solicitor's fee for independent advice for guarantor (£100), an exit fee (£100) and a funds transfer fee (£25).

The overall cost for comparison is 4.4% APRC representative

Further Information

Fees

  • There is no application fee.
  • There is a product fee of £850.
  • Valuation fees are payable on a set scale as detailed in the separate Fees Guide.
  • Solicitors fees are not based on a set scale and solicitors must be approved by Buckinghamshire Building Society.
  • Proc fees are 0.38% up to a maximum of £4,000.

Other charges may be made in respect of mortgage services. See our Fees Guide for details.

Parents providing additional security

Parents or grandparents can use up to 60% of the value of their own property to help their child/grandchild onto the housing ladder.

The Society will take a charge on the relative's property to bring the Society's overall LTV to 80%. The charge on the relative's property is for a set amount.

The relatives will have liability for any shortfall on the sale of the mortgage property in repossession subject to the maximum agreed at outset.

The charge on the parent's property can be released subject to a re-valuation and satisfactory conduct of the mortgage account.

We may also accept equity in holiday homes or Buy to Let properties other than the relatives' own, subject to individual approval.

Additional Security Calculator

Please complete our Additional Security calculator to assist in calculating the amount of charge required on the parent's/grandparent's home.

Requirements for Parents/Grandparents assisting 

The Society will require a basic valuation of the parent's property.

The Society will undertake an Experian credit search and electronic verification on the guarantors.

Guarantors will need to provide statements for any mortgage or secured loans on their property.

Society would require that the parents have a clean credit history and to verify that any existing mortgage is not on a roll up basis.

Parents would need to take and evidence that they have had independent legal advice to ensure they are fully informed and that the solicitor can identify potential vulnerable persons.

Higher Lending Charge

A Higher Lending Charge does not apply.

Acceptable Credit Criteria

This product accepts our standard credit criteria click here for details

Early Repayment Charge (ERC)

Early Repayment Charges as detailed below are payable on any lump sum or full redemption repaid over 10% of the capital balance.

  • 1.50% in year 1
  • 1.00% in year 2
  • 0.50% in year 3

Overpayments

During the early repayment charge period lump sum overpayments up to 10% of the capital balance per annum may be made without attracting an early repayment charge. Should the total of lump sum overpayments exceed 10% within this period, the excess will attract an early repayment charge.

Once the early repayment charge period has ended overpayments can be made at any time.
If an overpayment of £500 or more is made, we will recalculate the monthly payment the following month.

Affordability

The First Time Buyers will need to demonstrate they can afford the mortgage payments in their own right and pass normal affordability checks.

The amount we lend will be based on our assessment of affordability. Income multiple cap is 4.5 x first income plus 3.5 x second income or 4 x the joint income. Debt consolidation is not available.

Repayment

This mortgage is available on a capital repayment basis. Payments must be made monthly by direct debit.

Proof of Income

  • Employed applicants must have 3 months with current employer.
  • Last 3 months bank statements.
  • Completed Budget Planner.
  • Last P60 and 3 months payslips for all employed applicants.
  • Certified photographic proof of identity.

We will carry out electronic verification to prove the applicant's identity, but we may also ask for documentary evidence of identity. This can include the applicant's latest mortgage statement, certified proof of residency or other loan or card statements.
References may be taken up and credit searches will be made. Cases may be declined due to previous adverse credit or information that is not disclosed on the application form.

Age Limits

The minimum age is 18 for all applicants. There is no max age. Cases are considered on individual circumstances.

Loan Size

Minimum loan size £25,000.
Maximum loan size £500,000.

Mortgage Term

The maximum mortgage term is 40 years dependent on individual circumstances.

Insurance

We recommend that the applicant has buildings insurance on the property. It is not a requirement to buy any insurance through Buckinghamshire Building Society.

Portability

This product is portable, meaning that if the applicant moves home they can take it with them, subject to our lending criteria at the time.

Property type

Standard construction houses or flats. For leasehold properties the Society requires a minimum unexpired period of 85 years at the time of purchase and at least 55 years unexpired lease remaining after the expected redemption date. Flats over 4 storeys may be considered on an individual basis but are not acceptable if they are local authority or ex-local authority.

For new build properties the Society requires a minimum lease term of 125 years, a maximum starting ground rent of 0.1% of the property value and no unreasonable ground rent escalators or other event fees.

Interest

Interest is calculated daily on the balance outstanding and added to the account the following month.