Mortgage which takes into account parental savings?

not_tonight_josephine_2

Hi, I think I remember seeing someone mention a mortgage on here which is available at a high LTV but which takes into account parents savings held in another account with the same bank to get you a better deal? The actual savings are not at risk in any way though as they are not used to guarantee the loan.

Can anyone remind me which bank was offering this deal (if they still are)? Also, do the savings have to belong to a parent or could it be someone else?

Thanks

unite79

lloyds are the bank

g_attrill

not_tonight_josephine wrote: »

Hi, I think I remember seeing someone mention a mortgage on here which is available at a high LTV but which takes into account parents savings held in another account with the same bank to get you a better deal? The actual savings are not at risk in any way though as they are not used to guarantee the loan.

As mentioned, Lloyds TSB Lend a Hand - BUT the savings are a security for the mortgage, so they are certainly at risk!

http://www.lloydstsb.com/savings/lend_a_hand_product_page.asp

not_tonight_josephine_2

Thanks - I'd obviously managed to miss out the bit about savings being at risk when I read it before!

It sounds like it can be done by anyone, not just a parent which is what I was hoping for, so will go and do some more investigation!

not_tonight_josephine_2

hmm, it's only available to first time buyers - are there any similar products out there which are available for someone remortgaging a house?

Conrad

No.

Parents could gift you the cash to pay down the sum borrowed so as you can better remortgage. Lenders don't like these situations so has to be handled with care.

The better remortgage deals come in under 75% LTV. Make sure your property valuation is realistic and reflects a 20% drop since peak or the application could fail.