Parent Assisted Mortgage Scheme (PAMS)


Our Parent Assistance Mortgage Scheme was launched in 2013 to great fanfare. This type of mortgage will suit parents who want to help their children get onto the property ladder, but they don't have the spare funds for a full deposit. We will require a collateral charge over the parental property.

If you think this Mortgage may be right for your clients then get in touch with our Mortgage Sales team on 01225 475702 or vial email at intermediaries@bibs.co.uk to find out more.

100% Parent Assisted Mortgages

Product Name

The overall cost for
comparison is:

Rate structure based
on our Standard
Variable Rate

Availability

Flexibility

Fees

Early Repayment Charges

3 year Residential
2.0% Discount

UDD006

4.9% APRC

3.04% variable for 3 years followed by Standard Variable
Rate (SVR), currently
5.04%.

Purchase 100% Loan To Value (LTV),
(subject to
conditions). Capital Repayment only.

Overpayments up to 20% of the capital
balance as at 1st January are allowed in each calendar year without penalty.
Portable.

  • Product Fee 0.4% of advance (Minimum £599)

  • Administration Fee £125

  • Valuation Fee (scale)

  • Collateral Valuation Fee £100/scale

  • Completion Fee £75.

3% in years 1 & 2 , 2% in year 3, plus a Closing Administration Fee (currently £100).

95% Parent Assisted Mortgages

Product Name

The overall cost for
comparison is:

 

Rate structure based
on our Standard
Variable Rate

 

Availability

Flexibility

Fees

Early Repayment Charges

 

3 Year Residential
2.2% Discount

UDD005

 

4.7% APRC

2.84% variable for 3 years followed by Standard Variable Rate (SVR), currently
5.04%

Purchase 95% Loan To Value (LTV),
including fees where
added (subject to
conditions).

Overpayments up to 20% of the capital
balance as at 1st January allowed in each calendar year without penalty.
Portable.

  • Product Fee 0.4% of advance (Minimum £599)

  • Administration Fee £125

  • Valuation Fee (scale)

  • Collateral Valuation Fee (£100/scale)

  • Completion Fee £75.

3% in years 1 & 2, 2% in year 3, plus a Closing Administration Fee (currently £100).

An example: A mortgage of £164,442 taken out for a period of 29 years on a repayment basis.

Monthly instalments: £695.36 per month for 35 months, followed by £882.87 per month for 312 months.

Total amount payable, including fees: £301,225.80

Total amount of credit: £164,442

The total amount payable includes a product fee £657.76, valuation fees £325, administration fee £125, closing fee £100 and completion fee £75.

The example relates to Product Code UDD005, is based on a typical mortgage and assumes that fees are not added to the mortgage. Please ask for a personalised illustration for your own particular requirements.

We have no current plans to withdraw these products but they may be withdrawn without notice. Ask for a personalised illustration.

PAMS 100% Mortgage Lending Criteria

Loan size

Minimum £50,000, Maximum £350,000.
Term: Minimum 5 years, Maximum 40 years.
Repayment: Capital Repayment Only.

Property

Minimum Value: £100,000. Must be in England or Wales.

Applicant

Age: Minimum 21, Maximum 85, subject to income in retirement.

Income

Minimum income of £20,000, no minimum period of employment but must have passed probation, or self employed for at least 3 years

Parental Income is not considered when deciding how much we will lend

PAMS 95% Mortgage Lending Criteria

Loan size

Minimum £50,000, Maximum £350,000.
Term: Minimum 5 years, Maximum 40 years.
Repayment: Capital Repayment, Interest Only.

Property

Minimum Value: £100,000. Must be in England or Wales

Applicant

Age: Minimum 21, maximum 85, subject to income in retirement.

Income

Minimum income of £20,000, no minimum period of employment but must have passed probation, or self employed for at least 3 years

Parental Income is not considered when deciding how much we will lend

Combination of applicants’ income and rent from one tenant can be considered -  - details available on request. Tenancies must be on an assured shorthold or licence basis for no more than 12 months (renewable) and no more than three tenants.

PAMS Mortgage Lending Information

Underwriting

We will carry out a full assessment of your clients income and expenditure to ensure that they can afford the mortgage both now and in the future.  All mortgages will require additional security in the form of a collateral charge over the parental property.  This means that it may be more difficult to raise capital against the equity in the parental home and in the event of default, their home may be at risk.  Maximum total of charges over additional security must not exceed 70% of its value.

We take a flexible approach to underwriting and will consider each case on its merits. We do not credit score. The actual rate and APRC for the case will depend on the circumstances of the case and our assessment of the risk.

Collateral Valuation

If the collateral security is standard construction and is visible from the road, the Valuer will endeavour to carry out a drive-by valuation and this will be charged at £100. If the Valuer is unable or unwilling to carry out a drive by valuation, or the property has a current value of >£500,000, we will require a standard mortgage valuation to be carried out and this will be at our usual scale fee based on the value of the property.

Procuration Fees:

We will pay an uncapped procuration fee of 0.35% of the amount borrowed to directly authorised and regulated intermediaries on completion of the
mortgage. Where the intermediary is an Appointed Representative, the fee will be paid to the Principal. In the event of a change of Principal for any reason, the fee will be paid to the firm responsible for the information or advice at the time the sale was made.

Valuation Fee Scale

Property Value

Mortgage Valuation Fee Homebuyers Report Fee

up to £100,000

£125 £310

£100,001 -£150,000

£190 £365

£150,001 - £200,000

£225 £415

£200,001 - £250,000

£265 £455

£250,001 - £300,000

£300 £495

£300,001 - £400,000

£340 £550

£400,001 - £500,000

£400 £600

£500,001 - £600,000

£475 £700

£600,001 - £700,000

£525 £800

£700,001 - £800,000

£600 £900

£800,001 - £900,000

£700 £1,000

£900,001 - £1,000,000

£800 £1,100

Over £1m

By Negotiation

Fees include VAT

If you have a client you think may benefit from our flexible service, please call us on 01225 475702 to discuss the details. We will email you the application forms and all the other documentation you will need. There is no need to register with us to use this service.

For more information about our range of mortgage products contact the Mortgage Sales team on 01225 475702 or via email at intermediaries@bibs.co.uk