Family Support Mortgage 95% LTV
This mortgage is available to first time buyers looking to purchase their first home with support from a family member.
The family support allows the borrower to access an enhanced rate on their mortgage, when a family member holds funds in a Family Support Savings Account linked to the Mortgage, for the first five years of the mortgage.Find out how our Family Support Mortgage works Full details of our Family Support savings account
Please make sure you read the specific product criteria below.
An initial rate of
fixed until 30/11/2024,
followed by a 1.00% discount off our SVR, which is currently 5.64%, to give a current rate payable of
variable for the rest of the mortgage.
The overall cost for comparison is
|Loan to Value (LTV)||95%|
|Arrangement fee||None Other fees may apply.|
|Available for remortgages||No|
|Early repayment charges||3% of the advance|
Your home may be repossessed if you do not keep up repayments on your mortgage
The following representative example is intended to allow you to easily compare products across lenders and does not reflect what your actual monthly payment or APRC could be. Please contact us if you have any questions regarding this.
A mortgage of £190,084 payable over 35 years, initially on a Fixed rate for 5 years 7 months at 2.97% and then a 1.00% discount off our current Standard Variable Rate Mortgage of 5.64% to give a current rate payable of 4.64% (variable) for the remaining 29 years 5 months, would require 67 monthly payments of £728.36 and 353 monthly payments of £890.83.
The total amount payable would be £363,469.31 made up of the loan amount plus interest (£173,420.20), an application fee of £180 and a redemption fee of £80.
The overall cost for comparison is 4.1% APRC representative.
Fees may differ to those shown in this representative example. Current fees can be found in our tariff of charges.
Additional product information
- Free standard valuation.
- Must be a First Time Buyer
- Overpayments up to 10% of the advance are allowed.
- This mortgage is available to new mortgage customers only.
If you already have a mortgage with us and are looking to switch your deal, please give us a call on 0800 072 1100 to discuss our range of mortgages available exclusively for existing customers.
- This mortgage is portable which means it is possible to take this product with you to a new property, subject to lending criteria and policy at the time.
- The interest rate charged will not fall below 2.00% (the minimum interest rate) at any point during the mortgage.
- The mortgage must be for a minimum of £30,000 and a maximum of £500,000
- The minimum term for this product must equal or exceed that of the fixed rate period and the maximum term is 40 years.
- All applications are subject to current lending criteria.
- The minimum property value is £100,000.
- All applicants must be at least 21 years of age.
- Please view our mortgage services fees and our mortgage valuation fees.
Specific product criteria
Click on each of the boxes below to see the full criteria for the mortgage borrower and the family supporter.
Mortgage Borrower Click here to see the full product criteria
- Must be a First Time Buyer
- An additional 5% of the purchase price must be placed into a Family Support savings account and Legal Charge over the account signed
- We will share information about the mortgage account with the Savings Supporter if mortgage payments are missed or if we are going to take action to collect these payments.
- If the mortgage falls into arrears of two contractual monthly instalments or more, we will take money from the Savings account. We will tell the Supporter before we do this.
- If the mortgage account falls into arrears, we may extend the period of the Legal Charge on the Savings account until the mortgage has been up to date for 6-months.
- If we repossess the property and following sale there is a sale shortfall, we will take money from the Savings account. We will tell the Supporter before we do this.
- The amount the borrower owes will include any costs, fees and additional interest. This means the amount the borrower owes may increase.
- Further Advances or Second Charges will not be permitted whilst the Legal Charge on the Savings account remains in place.
Family Supporter Click here to see the full product criteria.
- A maximum of two Family Support Accounts can be held per Family Support Mortgage
- Supporter must be at least 18 years old and at least one must be a close family member, defined as one of:
- Parents, step parents and adoptive parents;
- Brothers and sisters, half brothers and sisters, and step brothers and sisters.
- Children, step children and adopted children
- Grandparents and step grandparents
- Grandchild and step grandchild; and
- Aunt and uncle
- Powers of Attorney are not acceptable
- You must deposit an amount equivalent to 5% of the purchase price of the property to be mortgaged, by the Family Support Mortgage into the Family Support savings account.
- Funds must be deposited at least 14 days before the anticipated mortgage completion date.
- If the Savings Account is closed in the cooling off period, the borrower’s mortgage application will be cancelled.
- The Family Supporter must obtain Independent legal advice before they sign the application form and open the savings account.
- The Family Supporter does not have any legal rights or other interest in the property in mortgage to us under the Family Support Mortgage.
- Your savings are connected to the Family Support Mortgage and provides security for payments due under the mortgage during the first 5 years of the mortgage (term to match the fixed rate period). This means you may not get back what you put in.
- The money in the Family Support account cannot legally be accessed by you, the supporter, for 5 years (term to match fixed rate period) or whilst these terms and conditions remain in place.
- We will share information about the mortgage account with you, the Family Supporter, if mortgage payments are missed or if we are going to take action to collect these payments.
- The amount the borrower owes will include any costs, fees, and additional interest. This means the amount the borrower owes may increase.
- If the mortgage falls into arrears of two contractual monthly instalments or more, we will take money from the Savings account and credit the money to the Family Support mortgage account. We will tell the Supporter before we do this. We may also require you to deposit additional funds in the account to replace the funds withdrawn.
- The savings account may not be closed and you will not be able to make withdrawals before the mortgage fixed rate period under the Family Support Mortgage has ended or while there are any unpaid amounts under the terms of the Family Support Mortgage.
- If we repossess the property and following sale there is a sale shortfall, we will take money from the Savings account and credit the money to the Family Support Mortgage. We will tell the Supporter before we do this.
- If you become bankrupt the terms and conditions will still apply.
- You may not transfer ownership of your account or the account balance to anyone else and you may not use the account or the account balance as security for a loan except as set out in these terms and conditions.
THE SAVINGS MAY BE AT RISK IF THE BORROWER DOES NOT KEEP UP REPAYMENTS ON THEIR MORTGAGE
This does not include all of the information you need to choose a mortgage. For full details please ask us about how you can get an illustration.
Talk to us today
To arrange an appointment with one of our Mortgage Advisers call us free on:0800 072 1100or complete the form below: