Parent Assisted Mortgage Scheme (PAMS) with Guarantor

3 year Residential
2.0% Discount
UDD006

3.44% variable for 3 years followed by Standard Variable
Rate (SVR), currently
5.44%.

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 £125/scale

• Completion Fee £75.

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

3 Year Residential
2.2% Discount
UDD005

5.1% APRC

3.24% variable for 3 years followed by Standard Variable Rate (SVR), currently
5.44%

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 £304,000 taken out for a period of 33 years on a repayment basis.

Monthly instalments: £1,385.29 per month for 35 months, followed by £1,714.56 per month for 360 months.

Total amount payable, including fees: £585,613.87

Total amount of credit: £235,000

The total amount payable includes a product fee £1216.00, valuation fees £395, administration fee £125, collateral valuation 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 clients particular requirements.

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

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

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

Minimum income of £20,000, no minimum period of employment but must have passed probation, or have been 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.

£20,000-£50,000

4.25x

4.25x

Over £50,0000

4.5x

4.5x

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.

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.

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 £125.  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.

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.