As house prices continue to rise, affordability remains a major issue for first time buyers. This is why we’ve developed Helping Hand, which will give your eligible clients the option of borrowing a higher loan amount when taking a 5 or 10 year fixed rate product.
Below you'll find the eligibility criteria for your clients:
- All applicants must be first time buyers
- Available up to:
- 95% LTV on second-hand houses
- 85% LTV on second-hand flats
- 85% LTV on New Build houses
- 75% LTV on New Build Flats
- Minimum income of £37k sole applicant, £55k for joint applicants. All income sources (except self-employed income) can be included.
We won’t accept applications with the following:
- Self-employed income for either applicant
- In conjunction with any scheme or non-standard ownership type (for example Deposit Unlock, Shared Ownership, Genuine Bargain Price, Right to Buy and Help to Buy)
- Interest Only
Please note: Helping Hand is only available to first time buyers on the original purchase. It won't be available on any subsequent transactions, such as additional borrowing where standard criteria applies.
- To find out if your client requires the higher borrowing offered by Helping Hand please use the Affordability calculator.
- For all eligible first time buyers, the Affordability calculator will indicate two maximum affordable amounts, one for standard and one for Helping Hand
- Where Helping Hand is required for affordability, you'll need to select ‘Fixed Rate (5 years or more)’ on the ‘Product Type’ question within Loan Requirements of your Decision in Principle (DIP).
- If you key a DIP on a standard lending basis but this is unaffordable, you'll be given the option to resubmit the DIP using Helping Hand on a 5 or 10 year fixed rate.
Amending a fully submitted application to Helping Hand
If you've already submitted a Full Mortgage Application which fails affordability and you want to amend it to Helping Hand to increase the affordability, you'll need to state that the application now requires 'Helping Hand' and change the product to a Fixed Rate of 5 years or more.
You can do this by either: