The Helping Hand product was previously available through Openwork and via Chelsea branches. After a launch period it had been decided to launch the product to the whole intermediary market and enhance the criteria.
The product is aimed at first-time buyers who are finding it difficult, if not impossible, to enter the housing market by using parents’ income to enhance the borrowing capacity of their children and to make this process easier.
The Helping Hand deal can be fixed or a tracker. The fixed deal is at 5.24% until 1 March 2010 then reverts to the Society’s standard variable rate, currently 6.99%. The overall cost for comparison is 6.7% APR. Early repayment charges of 3% until 1 March 2010 apply.
The Helping Hand Tracker mortgage tracks Bank of England Bank Base Rate plus 0.15% for the first two years then reverts to the Society’s standard variable rate. The overall cost for comparison is 6.9% APR. Early repayment charges of 3% for first two years of the mortgage apply.
Both products are available up to 90% loan-to-value (LTV), with an arrangement fee of £695, free valuations and higher lending charges above 90%.
• The maximum age of the parent at the time of application has been increased from 55 years to 60 years.
• The Helping Hand Mortgage will now be available to applicants who are remortgaging in addition to those who are buying a property
