With an ageing population, coupled with the increasing cost of property, the average age of the first time buyer is rising and a growing number of people are borrowing beyond normal retirement age or looking at flexible ways to get on the property ladder.
In this case study, we helped a son buy his first home by allowing Mum and Dad to take out the mortgage with him. Details of the application included:
- House purchase of a property valued at £101,950
- Term of 15 years with the property eventually to be transferred fully to the son
- Mum and Dad able to provide a 25% deposit
- A loan amount of £77,263 was taken out on a capital repayment basis using the son’s PhD income
- Oldest applicant aged 60. The Society was able to offer the three of them a mortgage, taking the oldest borrower to age 75 at the end of the term
The applicant was able to benefit from a gifted deposit from Mum and Dad and had the flexibility of adding multiple applicants to the mortgage.
We can accept up to four people on an application with up to 3 incomes used for the affordability assessment, and mortgages are available up to age 85 (maximum 70% loan to value between age 70 and age 85). There are other ways we can help too.
As well as our Family Assist range, we can also allow a person to act as a guarantor for a borrower or we can allow a close family member to contribute to the mortgage repayments without them having any ownership rights, something known as Joint Borrower Sole Proprietor (JBSP).
A common sense approach
If you’ve got a case on your desk that requires a common sense approach to lending then please pick up the phone to our Broker Support team on 01623 676360 or visit https://www.mansfieldbs.co.uk/intermediaries/.
