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3.89% Family Assist fixed rate to 28 February 2022 [FA04]

Follow on rate SVR currently 5.24%.
The overall cost for comparison is 5.1% APRC

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

 

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

  • Available to First Time Buyers only
  • No Higher Lending Charge
  • 100% LTV on applicants property purchase (overall 80% LTV with parents property equity)

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

 

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

  • Initial Rate, fixed to 28 February 2022
    3.89% fixed
  • Followed by our Standard Variable Rate (SVR) for the rest of the term
    5.24% variable
  • The overall cost for comparison is
    5.1% APRC
  • Maximum LTV
    100% including fees
  • Application Fee
    none
  • Product Fee - may be added to the loan
    £850
  • Early Repayment Charge
    Charges will apply to any lump sum or full redemption paid over 10% of the capital balance
    3.00% to 29/02/2020
    2.00% to 28/02/2021
    1.00% to 28/02/2022
  • Available to First Time Buyers only
  • No Higher Lending Charge
  • 100% LTV on applicants property purchase (overall 80% LTV with parents property equity)

Representative Example

A mortgage of £86,150 payable over 20 years at a fixed rate of 3.89% to 28th February 2022 and then on our Standard Variable Rate of 5.24%, for the remaining period would require 36 payments of £517.07 and 204 payments of £571.61. 

The total amount payable would be £136,769.96 made up of the loan amount plus interest (£49,072.96), a valuation fee on purchase property (£160), product fee (£850), solicitors fees (£312), solicitor's fee for independent advice for guarantor (£100), a funds transfer fee (£25) and an exit fee (£100). 

The overall cost for comparison is 5.1% 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. Parents or grandparents must have minimum remaining equity of £130,000 and the maximum loan to value (LTV) is based on the number of bedrooms as follows:

4+ Bedrooms 60% Maximum LTV

3  Bedrooms 50% Maximum LTV            

2  Bedrooms 40% Maximum LTV

1 Bedroom homes would not be considered.

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 

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.

  • 3.00% to 29/02/2020
  • 2.00% to 28/02/2021
  • 1.00% to 28/02/2022

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. Last 2 years accounts or SA302s for all self-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 maximum age, but pension income is not permitted to be used for affordability purposes, so applicants cannot be retired during the term of the loan.

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.

Mortgage Term

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

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.

Loan Size

Minimum loan size £50,000.
Maximum loan size £500,000.

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.

New Build

90% LTV applies to new build houses outside the M25 (London area). Houses in London and all flats have a maximum LTV of 80%. 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.