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Bank of Ireland 1st Start Mortgage

1st Start mortgages from the Bank of Ireland

The example below demonstrates how parents can help their children gain their first step on to the property ladder by using their residual income as part of the overall maximum mortgage calculation. The parent's income has their "annualised" mortgage debt deducted, and then the 4 x income multiplier is applied. The childs income is now added to give a total allowable mortgage amount that can be borrowed

The mortgage is a joint mortgage between parent's and child and is available up to 95%
The parent's can be removed from the mortgage, at a later date, when the Bank of Ireland is satisfied that the child can afford the mortgage on their own, or when another person i.e. their new partner, agrees to join them on the mortgage. A transfer takes place and the parents are released of their responsibility

Working example of how parent's income (after deduction of their own mortgage commitment) can be combined with their childs income, to allow their child to buy a property that other lenders would refuse to fund.

Parent's mortgage debt:	£50,000
Parent's income:	£40,000
Annual mortgage repayment:	£50,000 x 5%* = £2,500
Parent's income less annual mortgage repayment:	£40,000 - £2,500 = £37,500
Parent’s income multiple	£37,500 x 4 = £150,000
Balance:	£150,000
Plus daughter's income:	= £20,000
TOTAL LOAN:	= £170,000

* Bank of England Base Rate plus 1.5% (adjust as necessary)

Mortgage Arrangers, Equity House, 225 Hatherley Road, Cheltenham Gloucestershire GL51 6HF

E-mail: Mortgage Arrangers

Your home may be repossessed if you do not keep up repayments on your mortgage