Buckinghamshire BS launches 100% LTV guarantor mortgages

Buckinghamshire Building Society has announced that it will offer Guarantor Option Mortgages on selected products in the Society's range.

Related topics:  Mortgages
Rozi Jones
26th May 2015
house and savings

The mortgages are aimed at first time buyers or movers who find it difficult to raise a large deposit, and don’t want to pay an extra higher lending charge.

Parents can use up to 75% of the value of their own property to help their child onto the housing ladder.

Applicants will need to demonstrate they can afford the repayments in their own right, but Buckinghamshire will not investigate the parent’s income. It will instead require a valuation to be carried out on their property, and they must complete an application form, detailing any existing mortgage or outstanding loans.

The Society will take a first charge on the applicant’s property and a charge on the parents’ property, with the guarantor liable for any shortfall on the mortgage if the applicant defaults on their repayments. The guarantor must also take independent legal advice.

Buckinghamshire will consider guarantors with equity in other properties, subject to lending criteria.

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