Family assisted mortgage

Family assisted mortgage

Here at the Tipton, we understand that getting on the property ladder can be hard. But, with the added boost from a family member, they can help you get a mortgage with no deposit. To help overcome these challenges, we have introduced our Family Assist Mortgage.

Our Standard Family Assisted mortgage allows you to borrow 100% of the purchase price or property value (whichever is lower), with no borrower deposit. Mum, Dad or relatives can help boost your position on the property ladder, by either accepting a 20% charge of the purchase price or property value (whichever is lower) on your new home on their own property, or by putting 20% of the purchase price or property value (whichever is lower) into our Family Assist savings account, this is commonly known as a family savings mortgage.

Our Flexible Family Assist incentive requires a minimum deposit of 1% from the applicant (maximum deposit 10%). The remaining security, up to the value of 20% can then be made up of either our collateral charge option or our savings deposit option. For instance, the applicant provides a 1% monetary deposit and the remaining 19% is then made up of the collateral charge option or our savings deposit option.

Savings Deposit Option
Your parents or relatives can help you to buy your home by placing 20% of the purchase price or property value (whichever is lower) into our Family Assist savings account. They are also free to withdraw their money once you have reached 80% loan to value on your mortgage (you own 20% of the property's value) at the time they are looking to withdraw.
We've found that this option is great for family members who want to help you buy your home, while gaining interest on their savings.

Collateral Charge Option
A collateral charge can sound scary. In reality, it is simply a way for the Society to secure your borrowing against your family members property. To allow a mortgage with no borrower deposit, we would need to secure 20% of the purchase price or property value (whichever is lower) of your new home against a family members' property. To qualify for this option, the family member assisting you would need to own at least 40% of their own home.
It's important to note that the Society will act on this collateral charge as a last resort, and it would only be enforced after all other options have been explored.
This option is great for those whose parents, or family members wish to help boost their position on the property ladder, but do not have the cash to gift.
Please note: A standard valuation will need to be completed on both the purchase property and your family member’s property, at your expense. You'll also need to pay for your own legal costs and your family member’s independent legal advice. We will need your parents or relatives written consent for us to carry out a credit check against them. However, we will not complete any income assessments or further underwriting against your family member. The amount you can borrow is determined by your income and status only.

There is an arrangement fee of £999.00. This fee can be taken off the mortgage amount, or you can add the fee to the amount you borrow. If you choose to add the arrangement fee to your mortgage you will pay interest on the fee at the same rate as your mortgage. If you choose to take the arrangement fee off the mortgage, this will be deducted from the amount you borrow and so, you will need to pay the arrangement fee to your solicitor at completion.

There is a minimum mortgage amount of £100,000.00.

This product has a maximum mortgage amount of £1,000,000.00.

We have a minimum property value of £100,000 which increases to £250,000 for properties located within the M25 corridor.

The maximum loan to value is 100%.

The interest rate is floored which means that the rate cannot fall below 4.84%.

The minimum repayment term is 5 years and the maximum repayment term is 40 years. Maximum term will depend upon individual circumstances, for example applicant age and leasehold property restrictions.

No early repayment charges apply on this product.

The mortgage tariff of charges details the various fees and charges that may apply during the term of your mortgage. To view these, please click here.

A mortgage of £216,000 payable over 30 years initially on a discounted variable rate for the term of the mortgage, currently 5.59% (equal to a 2.70% discount from our SVR) and then our SVR, currently 8.29% for the remaining term would require an initial payment of £1,277.77 followed by 359 monthly payments of £1,244.38.

The total amount payable would be £448,435.19 made up of the mortgage amount plus interest (£232,010.19), with an arrangement fee of £999.00, a valuation fee of £300.00, legal fees of £150, a telegraphic transfer fee of £25.00 and mortgage exit fees of £125.00.

The overall cost for comparison is 6.3% APRC representative.