PAMS - Criteria


Who can apply for this mortgage?

The mortgage is available to first time buyers throughout England and Wales. We may also consider people moving home, and applicants must be at least 21 years of age.

How much can I borrow?

We will lend up to 100% of the value of the property. The actual amount you can borrow will depend on your income.

How much income do I need?

Minimum income of £20,000, no minimum period of employment but must have passed probation, or self employed for at least three years. Parental income is not considered when deciding how much we will lend.

What Security is required?

We will require a first charge over the property to be purchased. On loans greater than 80% of the value of the property, we will also require a collateral charge over the residential property of your parents. This charge will be for no more than 25% of the purchase price. Where your parents already have a mortgage over their property, the value of that mortgage plus our charge must be below 70% of the value of their property.

What sort of property is acceptable?

The property must be in England or Wales. Minimum Property value £100,000. There are specific properties that we will not normally consider, such as ex local authority flats, flats in blocks of more than five storeys or flats over commercial premises, but please contact us to check whether a particular property is acceptable

Current Rates, Terms and Charges

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

APRC 4.9%

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

Purchase 100% Loan To Value (LTV),
(subject to
conditions.) No deposit required. 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). Minimum deposit of 5% required.

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).

 

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 product fee £657.76, valuation fees £345, 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.

Lending Criteria and Information

Loan:

Size: Minimum £50,000, Maximum £350,000.
Term: Minimum 5 years, Maximum 40 years.

Property:

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

Applicant:

Minimum is age 21.

Income:

Minimum income of £20,000, no minimum period of employment but must have passed probation, or self employed for at least three years. Parental income is not considered when deciding how much we will lend.

Underwriting:

Applicants must have a clear credit history and be able to demonstrate that they can afford the monthly repayments. Applicants must have sufficient funds available to pay all fees. Additional security will be required in the form of a collateral charge over the parental property. This means that your parent(s) may find it more difficult to raise capital against the equity in their home and in the event of default their home may be at risk. Maximum total charges over additional security must not exceed 70% of its value. Your parent(s) must take independent legal advice regarding the collateral charge and we will require written confirmation from a solicitor.
We will carry out a full assessment of your income and expenditure to ensure that you can afford your mortgage both now and in the future.
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 your case will depend on your circumstances 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.

 

Property Value

Mortgage Valuation Fee Homebuyers Report Fee

up to £150,000

£220 £445

£150,001 -£200,000

£245 £480

£200,001 - £250,000

£270 £515

£250,001 - £300,000

£310 £570

£300,001 - £400,000

£365 £620

£400,001 - £500,000

£420 £680

£500,001 - £600,000

£480 £790

£600,001 - £700,000

£535 £895

£700,001 - £800,000

£595 £1,000

£800,001 - £900,000

£655 £1,105

£900,001 - £1,000,000

£725 £1,210

Over £1m

By Negotiation

Fees include VAT

Next Steps

For more information or to apply, please contact the Mortgage Sales team on 01225 475737.or via email at mortgages@bibs.co.uk

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