Parent Assisted Mortgage Scheme (PAMS) with Guarantor


Unlike normal guarantor mortgages, this mortgage requires the guarantor to assist with the monthly mortgage payments from the outset.  If you would prefer a Parent Assisted Mortgage without a guarantor, please see our page without a guarantor.

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
2.0% Discount

UDD006

4.8% APRC

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

Purchase 95% 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).

80% 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 80% 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)

  • Completion Fee £75.

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

An example: A mortgage of £235,000 taken out for a period of 33 years on a repayment basis.

Monthly instalments: £942.13 per month for 35 months, followed by £1,200.91 per month for 360 months.

Total amount payable, including fees: £467,062.15

Total amount of credit: £235,000

The total amount payable includes a product fee £940.00, valuation fees £370, administration fee £125, closing fee £100 and completion fee £75.

The example relates to Product Code UDD006, 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 with Guarantor 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

Affordability is calculated on the applicants’ and guarantor’s income and expenditure.  It is likely that the guarantors will need to assist with the monthly payments from the outset and, in any event, they must be able to support the total borrowing plus their own mortgage, and any other commitments they may have.

As a guide, we will take the guarantor’s gross annual income and then apply a deduction for the annual amount paid towards any existing debts or other financial commitments.  We apply the following multipliers to the amount remaining.  In any event, the loan will be capped at 6x the applicants net sustainable income.

Income After Deductions

Sole Borrower

Joint Borrowers

£20,000-£50,000

4.25x

4.25x

Over £50,0000

4.5x

4.5x

These multiples are for guidance only and do not guarantee that we will lend the amount indicated.  We will carry out a full assessment of your income and expenditure

PAMS Mortgage Lending Information

Underwriting:

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.

Loans above 80% Loan to Value:

Mortgages above 80% ltv 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.

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.

Valuation Fee Scale

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.

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