Bath launches to become second 100% LTV mortgage lender
The three year fixed-rate mortgage has a rate of 5.29%. While parents do not have to put any money down, their home is used as third-party collateral and they are treated as guarantors for legal reasons.
A Bath spokesman said the involvement of family members showed the product was not intended to be a return to the pre-crunch 100% model: “The parents are in there supporting the children without spending a lot of money.”
The mortgage includes an administration fee of £100, a valuation fee, a minimum arrangement fee of £599 and a telegraphic transfer fee £25.
Applicants, who need to be 21 or over, must be able to demonstrate they can afford the monthly repayments and have sufficient funds to pay the fees.
The product is only available to those buying property in the South West of England or within a 100 mile radius of Bath.
Bath is the only the second mortgage lender offering 100% LTV after Marsden BS withdrew its 3.29% variable rate loan on 24 January. Aldermore continues to offer its two and three-year fixed rate 100% guarantor loans at 5.48%.