How First Start Works
First Start is a joint mortgage between parent(s) (or step-parent) and children , using the parent’s income to enhance the borrowing capacity for the mortgage. As such, the parent is jointly liable for the mortgage repayments and the total loan. We strongly recommend that independent financial, tax and legal advice are taken on this product.
- Joint mortgage between sponsor, parent(s) or step-parent and children
- Main earning sponsor must be the First Applicant
- Provides extra borrowing power
- Alternative to liquidating investments or extending the parents existing mortgage to fund substantial cash deposits
- Competitive product range available
- Borrow up to 95% of the purchase price
- Open to all occupations, not just graduates
- Uniquely different to guarantor mortgage
- Minimum age of borrower – 18 years
- Maximum age of parent (close relative) - 60 years at application date
- Choice of property ownership - joint or sole title
- Higher Lending Charge paid by Bristol & West Mortgages
- You may be liable for any mortgage shortfall debt if after repossession the sale proceeds are not sufficient to repay your outstanding debt
- Also available for Remortgagers and 2nd Time Buyers
How is First Start different to a guarantor mortgage?
Many parents will be familiar with the concept of acting as guarantor for their children. A First Start mortgage is different and unique because it is more flexible, gives your client more options and substantially improves their purchasing power.
| First Start Mortgage |
Guarantor Mortgage |
| Flexible approach to the parents income and own mortgage commitment |
Deduct the total outstanding mortgage debt from a multiple of the parents income |
| Comprehensive and competitive product ranget |
No choice of ownership |
| Substantially increases buyers purchasing power |
|
| Open to all occupations |
|
Please note that with a First Start mortgage the parent is jointly liable for the mortgage repayments and the total loan. We strongly recommend that independent financial, tax and legal advice are taken on this product.
Important Considerations
Financial obligations of both parties
The First Start mortgage is a joint mortgage between parent and child. Therefore, both parties are jointly liable for the repayments and the total loan. As such, we strongly recommend that both parties seek independent financial, tax and legal advice in respect of this scheme. If the parent wishes to be released from the mortgage, the child must be able to display that they have sufficient income under standard lending criteria from Bristol & West Mortgages to support the loan.
Property ownership
The Mortgage Deed is written in such a way as to allow the property to be owned solely by the child or jointly by the child and the parent. The choice is for the parent and child to determine the appropriate option and for your solicitor or independent financial adviser to inform us of the decision taken. In all cases, we strongly recommend that all parties seek independent legal advice regarding the nature and practical implications of the mortgage documentation. However, if the property to be owned is in the sole name of the child, then the parent, as a condition of the Mortgage Offer, must receive independent legal advice in respect of this transaction before completion. It is possible that the same solicitor can also act on a separate basis for the parent.