Woolwich has launched a new product to assist first time buyers in getting onto the property ladder and has announced changes to its product criteria with effect 18th June 2012
The new First Time Buyer Mortgage Product
The lender has launched a new product call “Helpful Start” which is aimed at first time buyers who have, or who are, struggling to meet lenders affordability calculations when trying to buy their first home. The idea of the new product launch is to take into account the income from the parents that can now be used within the affordability calculator – On previous applications it was only the income of the first time buyer that was used.
The parents income can also be used to increase the income multiple that the lender uses meaning a larger loan can be obtained for the applicants. It will allow, for example, the Mother or Father to go onto the mortgage with their son or daughter for the purposes of obtaining a new mortgage, however they won’t actually own the home – In other words, a second applicant can appear on the mortgage paperwork without actually being the co-owner of the property.
Woolwich are currently very competitive on rates so this new product is a very welcome addition to assist first time buyers in the current mortgage climate.
New lending Criteria – On all mortgage products
Woolwich has announced that it has changed its lending view on certain criteria when assessing mortgages. The lender will now take into account foster income where documentary evidence of the income can be supplied. Bonus income will also be considered where it can be proved and is paid monthly or as a regular payment – annual bonuses will still be viewed differently to a regular bonus when it comes to an income multiple.