First-time buyers can take out a mortgage jointly with a ‘sponsor’ using Bank of Ireland UK’s First Start Mortgage.
With the partnership the first-time buyer can take out a bigger loan with the two sets of income, as well as pay the loan back jointly with the sponsor.
Despite the arrangement the first-time buyer counts as the sole owner of the property.
The Bank of Ireland has increased its procuration fees on the range from 0.40% to 0.50%, due to the more complicated nature of the work involved.
Alison Pallett, director of sales, Bank of Ireland UK, said: “A healthy first-time buyer market is essential to the wellbeing of the housing market as a whole, and we’re all too aware of the challenges that borrowers face with increasing pressure on affordability and saving for a deposit.
“We want to help more people to get the mortgage that is right for them.”
“We’ve also been doing more listening – based on feedback from brokers we’re increasing the procuration fees on First Start from 0.40% to 0.50%.
We understand the product application takes more time as contact is needed with both the borrower and the sponsor, and agree this should be compensated for.”
The products include a 95% loan-to-value 2-year fix at 4.09% and 5-year fix at 4.18%, both with no product fee.
Also available are options at 90% and 85% LTV.