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BoI increases advice proc fee to 0.50% on First Start

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  • 25/01/2018
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BoI increases advice proc fee to 0.50% on First Start
Bank of Ireland UK (BoI) has increased the procuration fee on its affordability-boosting mortgage First Start for first-time or returnee buyers from 0.4 to 0.5%.

 

 

It has also extended the range with rates on an 85% loan-to-value (LTV) starting from 1.48% and a 95% LTV beginning at 3.83%.

The entry-level product considers the applicant’s and a sponsor’s income together, boosting the overall amount that can be borrowed.

The co-borrowers, who are both jointly and individually liable for the loan and repayments can ask for up to 95% of the value of purchase properties on a repayment basis of up to £500,000.

Alison Pallett, director of sales, Bank of Ireland UK, said the bank understands the challenges that borrowers face and has been listening to brokers.

“We understand the product application takes more time as contact is needed with both the borrower and the sponsor and agree this should be compensated for,” said Pallett.

Michael Webb, broker at Mortgage Republic said: “The product has meant some clients have been able to consider three-bedroom instead of two-bedroom properties, and therefore skip a move in the future, which has been a joy to offer.

“Recently I spoke to a first-time buyer who had a good salary and was buying on his own. His mother wanted to help, as she knew his salary would increase as his career progressed. First Start enabled his mother to gift the deposit and also use her own income to help her son purchase a bigger home than he would have been able to afford if he’d bought on his own.”

 

First-time buyers

 

Meanwhile, the first-time buyer market continues to drive mortgage lending as gross mortgage lending rose to £20.2bn in December – up 1.2% against the same month in 2016.

Gross mortgage lending rose £11bn in 2017 to total an estimated £256bn to December, according to UK Finance figures out today.

 

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