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Bucks BS allows kids to help parents by joining mortgage

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  • 21/10/2020
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Bucks BS allows kids to help parents by joining mortgage
Buckinghamshire Building Society has launched a flexible mortgage option for older borrowers struggling to afford their repayments by allowing their children to be added to the loan.

 

In a reverse joint borrower sole proprietor scenario, instead of parents or grandparents being added to the mortgage to boost  the affordability of younger borrowers, the children are added instead.

According to the society, the initiative Parents Supported By Juniors can provide housing security for older borrowers.

There are no maximum age limits and the term can be based on the younger applicants’ retirement ages.

The mortgage is in all applicants’ names, but the property remains in the name of the parents or grandparents while the children are joint borrowers but are not added to the title deeds.

This means there is no stamp duty payable by the children for a second home.

Tim Vigeon, head of lending at the mutual said: “We are pleased to be able to offer a flexible lending solution, in order to help those coming to the end of their interest only mortgages, remain in their properties.

“This is another example of how Buckinghamshire Building Society’s human and bespoke approach to underwriting supports those in challenging situations.”

 

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