Bath Building Society has
launched a new product to assist people onto the mortgage ladder
for the first time by using equity in their parents home to secure
a higher loan to value than would otherwise be available. Additionally,
we may use rental income generated from letting a spare room in
the property to assist with the mortgage costs. Parents can assist
their children by guaranteeing the mortgage and by allowing a
charge over their own residence to support the loan required.
There are brief details of this mortgage below, but please do
contact us to discuss your individual circumstances.
Who can apply for this mortgage?
The mortgage is available to first time buyers throughout England
and Wales. We may also consider people
moving home. Applicants must be at least 21. Where the applicant
is moving home, we expect that at least 90% of the equity from
the sale of the previous property will be used for the purchase.
We always require a parental guarantee.
How much can I borrow?
We will lend up to 95%* (*Reference
UAV009) of the value of the
property. The actual amount you can borrow will depend on your
income. In some circumstances, we will also consider income you
receive from renting a room in your property. Where this is insufficient
to support the mortgage, we may also consider parental income
after deductions for financial commitments.
What Security is required?
We will require a first charge over the property to be purchased.
On loans greater than 80% of the value of the property, we will
also require a collateral charge over the residential property
of your parents. This charge will be for no more than 15% of the
amount being borrowed. Where your parents already have a mortgage
over their property, the value of that mortgage plus our charge
must be below 70% of the value of their property.
What sort of property is acceptable?
The property must be in England or Wales. The property must have
no more than 4 bedrooms. There are specific properties that we
will not consider, such as ex local authority flats, flats in
blocks of more than 5 storeys or flats over commercial premises.
General Information
Solicitors
We have a fixed fee arrangement in place with Martin Kaye Solicitors,
to cover the cost of the conveyance and the registration of the
collateral charge on the parental property. Please ask for more
details.
Current Rates, Terms and Charges
See current rate web page
Next Steps
For more information or to apply, please email mortgages@bibs.co.uk
or contact the
Mortgage Department on: 01225 475702
Bath Investment and Building Society is authorised and regulated
by the Financial Services Authority for advising, lending and
administering Mortgage Contracts.
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