In todays market first time buyers are finding it very challenging to find a mortgage with no deposit or a deposit of 5% or 10%.

Buckinghamshire Building Society’s family assist mortgage offers up to a 40 year term and allows the applicant to borrow up to 100% of the purchase price. By taking a collateral charge on the parents’ property we can use equity in their property to help their children get on the property ladder with smaller deposits.  Our new AVM desktop can be used to value the parent’s property with a standard valuation on the children’s property. Here’s an example of how it works:

While other banks and building societies have withdrawn more than half of their mortgage products since the beginning of March due to the challenges of the pandemic, Buckinghamshire Building Society remains committed to offering first-time borrowers the option of taking out a loan for 100% of purchase price with certain conditions:

• Property being purchased is solely owned by the children avoiding higher stamp duty and potential increased IHT liability for the parents
• Charge or second charge on the parents property is subject to a maximum LTV of 60%
• Charge on the parents property released when the LTV on the child’s property reduces to 80%
• Parent’s must take independent legal advice before charging their property

Find out more about our Family Assist product here or call our underwriting team on 01494 879500.

For intermediary use only.