There are only two lenders who offer 100% mortgage supported by parents.

They are Aldermore Bank who launched their mortgage in 2011, which has just been joined by the Bath Building Society.

Both lenders operate a similar scheme, where a 100% mortgage is advanced to the purchasers but security is provided by a second charge of 25% of the purchase price on the parent’s property. The benefit of this route to the parents is that they do not need to fund any deposit money or meet any monthly payments.

The drawback is that in the event of non-payment of the son’s / daughters mortgage their property can be repossessed. I would always recommend the parents take legal advice regarding the implications of the second charge.

I have listed below brief information regarding both lenders. (Based on a purchase price of £120,000)

Aldermore Bank                                               Bath B/Society

Rate                                       5.48% (6.00% apr)                                            5.29% (5.80% apr)

Fixed                                     3 years                                                                  3 years

Arrangement Fees               £1298                                                                    £700

As an alternative to these schemes is the Woolwich Family Spring Board Mortgage or a straight forward 95% mortgage provided by Monmouthshire Building Society, Principality Building Society or Leeds Building Society.

Why not contact us to discuss your options. We can then review your circumstances and match you to the most appropriate lender.

Why use Neil Soundy Financial Services for your mortgage advice.

We offer at least twice the choice of mortgages compared to a standard mortgage broker.

View the video on our homepage that explains how mortgage advice has changed.

We will give you expert impartial advice on the mortgage market.

Contact us today for a free no obligation initial discussion or meeting

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage

Request Call Back

We can discuss your current situation and the options available to you before arranging a free no-obligation meeting.

THIS MORTGAGE GIVES THE ABILITY TO BUY A HOUSE WITH JUST A 5% DEPOSIT.

The Principality Building Society has launched a 95% mortgage to join a small band of lenders at this high loan to value.

The major benefits to this mortgage product are :

1)      Competitive interest rate of 4.99% (apr 5.1%)

2)      Only a 5% deposit is required

3)      Open to first time buyers and homemovers

4)      No product fee

5)      Low booking fee of £99

My concerns about the scheme are that you are committed to the product until 28/02/2018. Should your circumstances change and you cannot port the product to another property you will have to pay a penalty of 5% of the outstanding mortgage.

Lending is restricted to Wales and postcode areas SY,HR,CH1,CH2,CH3 and CH4

UPDATE 24/04/2013

Monmouthshire have launched a a new 95% mortgage at a lower rate of 3.75% for three years (4.80% apr). Then 4.99% variable.

http://www.ns-fs.co.uk/95Percent-MORTGAGE-WITH-THE-MONMOUTHSHIRE-BUILDING-SOCIETY

There are a few other lenders offering 95% mortgages.

Clydesdale Bank, Leeds Building Society, Melton Mowbray Building Society, Monmouthshire Building Society, Newcastle Building Society and Nationwide (via their Save to Buy Scheme)

Note. All mortgages are subject to a full lenders underwrite and assessment.

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

The Financial Conduct Authority does not regulate some forms of buy-to-lets.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage

Request Call Back

We can discuss your current situation and the options available to you before arranging a free no-obligation meeting.

New lenders are now entering the mortgage market offering a fresh approach and are looking to lend. (For more information on SPV mortgages visit my earlier blog post)

Unlike other established commercial banks, Shawbrook Bank will consider interest only periods of up to 10 years on certain property types including all residential investment units to 75% LTV, 70% LTV on semi commercial and 65% LTV on commercial investment units.

 Types of Security accepted

Multi unit residential investments on one title

• Student BTL
• HMO
• Limited company without an SPV
• Commercial investments
• Mixed use commercial and residential investment units
• Modern factories and warehouses
• Offices
• Industrial units
• Repair Garages
• Hotels, guesthouses, bed and breakfast with more than 6 letting rooms or with a restaurant/bar
• Public Houses

Lending on HMO’s is particularly useful for Cardiff where the Council has introduced additional licensing for buy to let properties Cathays.

Why use Neil Soundy Financial Services for your mortgage advice.

See client reviews on our home page.

Your initial consultation is free with no obligation

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

The Financial Conduct Authority does not regulate some forms of buy-to-lets.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage.

Request Call Back

We can discuss your current situation and the options available to you before arranging a free no-obligation meeting.

Once you have submitted your accounts HMRC retain on your file a brief summary of the income that you have declared and any tax paid. In the past HMRC automatically sent these out but they now have to be requested. The SA302 will be requested by most lenders for self employed and share holding company directors as evidence of income.

There are a number of lenders who now only require a 10% deposit and one year’s accounts to apply for a mortgage.

It is common now for lenders to request for a SA302 in addition to accounts even if submitted by an accountant as it provides an additional level of confirmation of your income. In reality it is another measure to stop mortgage fraud.

What you will need to request a SA302?

Full name

Full current address

Date of Birth

10 digit individual tax code (if possible)

National insurance number

Fax number where to send it too. (request a copy in the post as well)

Request last three tax years

State it is to obtain mortgage as it will usually speed up the process

Flask of tea and biscuits, as it can take some time to get through

CONTACT NUMBER FOR HMRC IS 0845 900 0444

Why use Neil Soundy Financial Services for your mortgage advice.

We are different.

We offer at least twice the choice of mortgages compared to a standard broker.

View the video on our homepage that explains how mortgage advice has changed.

We will give you expert impartial advice on the mortgage market.

Your initial consultation is free with no obligation

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage

Request Call Back

We can discuss your current situation and the options available to you before arranging a free no-obligation meeting.

The introduction of the Funding for Lending by the Bank of England has now having effect on reducing the cost of borrowing to homeowners and landlords. The lenders are only offering these new rates on purchase or remortgage, while keeping their standard variable rates high.

If you current buy to let mortgage is on the following lenders standard variable rate it would be a good idea to review your options.

Monmouthshire Building Society             4.99% (5.00% APR)

Kent Reliance                                      6.58% (6.70% APR)

The Mortgage Works                            4.99% (5.20% APR)

Nottingham Building Society                  6.54% (6.30 APR)

Leeds Building Society                          5.99% (6.00% APR)

The Coventry Building Society offers a very competitive buy to let variable rate for the mortgage term. This product is available on a remortgage or purchase.

3.99% standard variable (4.20% APR)

Maximum loan to value is 65%

Fixed price arrangement fee of £250 on application and £749 added on completion

Free valuation and free legal’s on remortgage.

Penalty free

As this lender pays commission there is no charge for my advice.

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

The Financial Conduct Authority does not regulate some forms of buy-to-lets.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage

Request Call Back

We can discuss your current situation and the options available to you before arranging a free no-obligation meeting.

THIS NEW SECURED LOAN FACILITY HAS BECOME AVAILBLE TODAY.

Shawbrook Bank, a niche lender has broken new ground with this product.

This will give credit worthy homeowners the ability to raise additional funds up to 95% of the current value of their property.

I can see two areas where this 95% second charge lending will be useful.

1)     Existing borrowers with their present mortgage arranged on an interest only basis who do not want approach their existing lender in case this option is withdrawn.

2)     Existing borrowers on very competitive tracker rates who no longer meet lender current lending criteria.

Note. All cases are subject to a full lenders underwriting and assessment

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

The Financial Conduct Authority does not regulate some forms of buy-to-lets.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage

Request Call Back

We can discuss your current situation and the options available to you before arranging a free no-obligation meeting.