Vida's Helping Hand Mortgage

Vida's new Helping Hand product

The Helping Hand mortgage from Vida Homeloans has been designed to allow parents to join their child on the mortgage (and to have their income taken into account as part of our affordability assessment), without being on the title deeds and jointly owning the property. This type of mortgage is known as Joint Borrower Sole Proprietor.

WHY OFFER A HELPING HAND - KEY BENEFITS

  • Allows parents to help their child by allowing them to be party to the mortgage and their income taken into account as part of the affordability assessment.
  • Helping Hand could be an attractive solution for parents who own their own home and do not want to be caught by the increased stamp duty that could apply if they had to be on the title deeds to their child's home.
  • Up to 90% LTV for First Time Buyers.
  • Helping Hand is available across the wide range of Vida Plus rates and criteria, including gifted deposits, lending into retirement, self employed, interest only, and credit blips
  • Parents won't have to make a large savings deposit or place a second charge on their home.
  • Can help children back onto the ladder after a major life event, such as divorce.
  • New Build properties accepted to 90% LTV.
  • Parents will be jointly and individually liable for the mortgage along with occupiers (child and any partner) in maintaining the repayments. All applicants' credit profile will be affected if repayments are not maintained. 
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CRITERIA

  • First charge residential owner occupier purchase (FTB or home movers) or remortgage.
  • Helping Hand is for parents or step parents supporting their child (currently excludes uncles, grandparents or other close-family relationships).
  • The child's partner can also go on the mortgage and reside in the property. Upon application, the advisor must be highlight who are the parents and who are the occupiers.
  • All applicants will be jointly and severally liable and responsible for the loan, with only the child (and partner, if applicable) residing in the property
  • Available on all Vida Plus products (2 or 5-year fix, and 2-year variable).
  • FTBs can go oup to 90% LTV (FTB can be either the child or the partner). There is a minimum age of 25 for any FTB borrower and a maximum loan size of £400,000.
  • The maximum LTV is based on the tier chosen.
  • The parent(s) must take and evidence Independent Legal Advice before completion. It is highly recommended the occupiers also take advice. All applicants may also wish to take tax advice to understand any future implications of capital gains or inheritance tax.
  • The monthly direct debit will come from one account in the name of one of the borrowers.
  • Deposits can be gifted subject to normal policy and gift waiver.
  • Fee Saver option available with £0 product fee and refund of valuation on completion. Remortgages have no standard legal fees.
  • No guarantee will be taken in form of a second charge or ringfenced savings deposit
  • Affordability is calculated on all incomes for up to four applicants. As with the occupiers, the parents' existing mortgage and expenditure will be used to assess the maximum loan.
  • Allowed up to 40-year term, however the parents' age will determine the maximum term of the mortgage (max age of any borrower is 80 at the end of the term).
  • Purchase at undervalue not accepted.

WHO CAN BE OFFERED A HELPING HAND?

Sally - Helping Hand The Collins Family - Helping Hand Tom - Helping Hand
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