Next Generation Mortgage - Product Guide (Questions and Answers)
What are the benefits?
The Skipton International Next Generation Mortgage will fund up to 100% of a value of the property being purchased in Jersey, Guernsey or Alderney. The purchaser needs to enlist the support of a family member who will guarantee up to 15% of the purchase price of the property. This new mortgage opens the door for first time buyers and those who might be struggling to raise the deposit from their own means.
How much can be borrowed?
Up to £450,000 providing the borrower meets Skipton International's standard underwriting criteria.
What security will be taken?
A Guernsey or Jersey legal charge over the property being purchased plus a Guarantee of up to 15% of the value of the mortgage.
Will the Guarantee be supported by additional security?
Yes. The Guarantee can be supported by either;
(a) a Bond over the Guarantors property in Guernsey, Jersey or Alderney for the same amount of the Guarantee, or
(b) an Assignment of Cash over an offshore deposit account for the same amount of the Guarantee held at Skipton International in Guernsey. The offshore account will provide a variable rate of interest in line with the International Notice 90 account, interest rates for this offshore account can be found from our Savings page.
A Bond on the Guarantor's property would be taken providing any existing Bonding on the Guarantor's property plus the proposed Bond does not exceed 85% of the value of that property.
A valuation of the Guarantors property will be required from one of Skipton International's approved valuers.
Who can give the Guarantee?
A family member of the person(s) purchasing the property.
When can the Guarantee be cancelled?
The Guarantee will remain in force until the Loan To Value (LTV) on the borrower's property reduces to 90% or below. The calculation of LTV will be backed up by a valuation from a valuer on Skipton International's approved panel. Also, a good repayment history must have been maintained for the preceeding 12 months and the mortgage requirement remains within Skipton International's lending criteria.
What interest rate will be charged on the mortgage?
The Next Generation Mortgage is offered with the following interest rate option:-
- 4.99% fixed until 30 June 2015 (6.1% APR)
- 5.24% fixed until 30 June 2018 (6.1% APR)
On maturity a variable rate will be offered of 1% above Skipton International's Standard Variable Rate or further new fixed rates may be offered.
Will SIL charge any fees?
Yes. A one off fee of £999 will be charged which will cover the set up of the mortgage together with the administration of the Guarantee or Assignment of the deposit.
Are there any other fees for the Guarantor?
Yes. The Guarantor will be responsible for independent legal advice when signing the Guarantee, the Bond cost on the Guarantor's property and a valuation if required. The applicant is also responsible for the legal fees and valuation on the property being purchased and these costs will be paid directly to the professional service provider.
If the Guarantor will provide an Assignment of Cash over an offshore deposit account held at Skipton International, what information needs to be provided?
Date(s) of birth
Contact telephone numbers
Passport or Driving Licence
What additional information does the Guarantor need to provide if a Bond is going to be given against the Guarantor's property in Jersey, Guernsey or Alderney?
Written details of assets and liabilities
Written details of income and expenditure
Evidence of income
Existing mortgage amount, mortgage repayments and mortgage statement
Other loans, Hire Purchase commitments, Credit Card balances and any other financial liabilities
Will any early repayment charges apply?
If you repay the mortgage before the maturity of the fixed term the following early repayment charges will apply:-
2 year fixed - 3%
5 year fixed - 5%
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.