A major lender has recently launched a Family-Backed Mortgage which helps first-time buyers purchase a property with assistance from a friend or family member and get on the property ladder sooner.
Eligible buyers are now able to apply for a joint mortgage with friends or family members, while still purchasing the property in their own name.
This is sometimes known as a Joint Borrower be made up of all acceptable income types. Sole Proprietor mortgage. Although there is one owner, the liability for the mortgage is with both parties on the joint mortgage.
Eligibility criteria
A minimum income of £20,000 gross per annum for the main applicant owner/occupier. This can be made up of all acceptable income types.
Standard residential mortgage policy rules will
apply to all applicants, which include eligibility criteria of minimum age of 18 to maximum age of 75.
The non-owning borrower is not limited to family; it can be a friend.
- This is not available with mortgage schemes such as Right to Buy and Shared Equity.
- This is only applicable for Residential Purchase Products.
- Maximum of 2 applicants: the owner and the non-owner.
- A fact sheet must be provided to the non-owning borrower at the point of application.
- The non-owning borrower must seek independent legal advice before completion. An Independent Legal Advice Certificate will be sent to the non-owning borrower with the mortgage offer, seeking confirmation legal advice has been obtained.