Tipton offering 100% ltv first-time buyer mortgage - with a catch
Tipton and Coseley Building Society is offering first-time buyers up to 100% loan-to-value mortgages on its Family Assist product.
As part of the transaction, borrowers will not need to put down a deposit, although a family member will need to agree to have a second charge lodged against their property to guarantee the mortgage.
Tipton has one rate for this product and it is a 2.99% term-tracker mortgage with a 1.75% discount from the lender’s 4.74% standard variable rate. The overall cost for comparison is 3.1% APRC.
The mortgage does not have an arrangement fee or any early repayment charges. The maximum loan size is £400,000 if the property is within the M25 corridor or £250,000 for the rest of the country.
Aaron Strutt, product director at Trinity Financial, says: “If you do not have a deposit and you are looking to get on the property ladder this is an attractive option, providing you have a willing family member with a clear credit history and at least 40% equity in their property.”
The guarantor will need to provide written agreement to confirm they are happy with the terms and they will also need to pay for independent legal advice. The charge will be released from their property once the property is sold and the loan is repaid, or the loan-to-value falls below 75% loan-to-value.
To qualify for the mortgage, the buyer's income will be assessed to confirm the transaction is affordable. The minimum term is five years, and the maximum term is 35 years.
For help to secure a first-time buyer mortgage, call Trinity on 020 7016 0790.
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