family lending - dudley building society · 2018. 9. 20. · family lending 5 | for intermediary...
TRANSCRIPT
FOR INTERMEDIARY PARTNER USE ONLY
Family LendingDUDLEY BUILDING SOCIETY
SEPTEMBER 2018
Contents
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DefinitionOnce upon a time the common type of family lending was parents supporting their children (the good old bank of mom and dad!), which is still very popular – but we are seeing a much broader mix of family lending for a wide range of reasons.
Parents are always going to want to help their children wherever possible to get them started on the property ladder, especially when deposits are so hard to save for. We are however, seeing an emergence of children now supporting their parents’ borrowing needs – this does go hand in hand with lenders like ourselves that have no upper age limits across their mortgage product ranges.
Sam Ward Head of Lending
Family Lendingnounwhen borrowers are supported by their nearest and dearest to meet their borrowing needs.
British
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Our key points
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• No upper age limit across our whole product range
• Understand complex personal circumstances
• Reverse guarantor
• Joint mortgage, sole proprietor
• Multiple income streams accepted
• Downsizing
• Inheritance planning
Family lending
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Guarantor
• New house purchase, further advance, re-mortgage applications accepted
• Guarantor must pass affordability • Flexible guarantee period• Accept parent, step-parent, grandparent
and other close relatives as Guarantors – other relationships considered on a case by case basis
• Independent financial advice is encouraged – if waivered the Guarantor must confirm this in writing to the Society
• Non related guarantors accepted on a case by case basis
Joint Mortgage, Sole Proprietor
• For applicants that wish to be part of the mortgage but not on the Title Deeds
• Independent legal advice required• Borrower must select their own Solicitor
Reverse Guarantor
• Children supporting their parents to stay in their own home
• Downsizing support
Family Applications
• Up to 4 applicants (and their incomes)• Must be a close family relationships• Gifted Deposit accepted• Transfer of Equity accepted
Criteria overview
Applicant InformationNumber of Applicants Maximum number of applicants is 4
Minimum Age 18
Maximum Age No Restriction
Income Sources AcceptedPension, Salary, Annuity, BTL Income, Employed & Self Employed Income, Benefits (restrictions apply)
Repayment Strategies AcceptedDownsizing, pension, sale of other residential property, cash savings, sale of assets, stocks and shares and endowments
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Criteria overview
Loan Information
Repayment TypesCapital & Interest – 90% LTV
Interest Only – 75% LTV
Minimum Loan Size £25k
Maximum Loan Size £1m – affordability assessment will inform individual circumstances
Minimum Term 1 Year
Maximum Term 40 Years
Full product details can be found here Additional Information required for older borrowers
• Plans in place if one applicant was to predecease the other• Proof of retirement income when applicant is within 10 years of retirement• Details of any pension income• Expectation that borrower has sought legal advice to make suitable arrangements
in the case of ill health or vulnerability such as arranging a Power of Attorney
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Click on a photo to reveal more information about that particular case study.
These case studies, based on real examples, highlight the benefits of our enlightened approach to Famiy Lending, which typically have a number of common characteristics.
• Empowered lifestyle choices• Low Loan to Value loans• Reliance on pension income• Strong affordability• A generation of savers rather
than borrowers• Very creditworthy individuals• Lack of flexibility from existing
providers• Complex situations
Case studies
Family lending
Contact us
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If you have any queries about our product range, criteria or how to submit a case please call or email one of our Business Development Managers.
Jenny [email protected]
07772 042975
07483 058478