1st Start. For First Time Buyers stuck in the borrowing gap
We understand what a frustration it is. The size of your current annual income means you can borrow 'x'. But the property you want costs 'y'. Bank of Ireland Mortgages' innovative 1st Start mortgage could be what you need.
Rather than relying on your parents or another close relative lending you the cash to help you overcome your borrowing shortfall and get onto the property ladder, with our 1st Start mortgage they can lend you their borrowing potential instead. That's because 1st Start is a joint mortgage you take out with one of your parents or a close relative. This means it takes their income into account as well as yours, (counting theirs as the main one). So the amount you can borrow could be greatly increased. And it allows you to borrow up to 95% of the purchase price.
Whilst your parent or relative is jointly liable for the repayments and total loan of this mortgage they don't have to go through the full guarantor process, or contribute to the ongoing monthly repayments. The mortgage deed is written in such a way as to allow the property to be owned solely by just you or jointly by you and your parent or relative. If the property is to be solely owned by you, then your parent or relative, as a condition of the Mortgages Offer, must receive independent legal advice before proceeding. We also recommend that you both take financial and tax advice.
How to work out how much you can borrow
- Deduct your parents' annual mortgage repayment from their income **.
(For example, if they earn £28,640 and have an outstanding mortgage of £66,000, then deduct £4,290 (£66,000 x 6.50%) from £28,640 to give £24,350)
Also deduct all other annual credit repayments from their income. - Multiply the figure that's left by 4.5
Take your parents' income after deductions and multiply it by 4.5, e.g. £24,350 x 4.5 = £109,575 - Add your income to this figure.
(For example, if you earn £19,380, add this to £109,575 to give £128,955) - This figure is the maximum we will lend you – in this case, £128,955.
**We work out their annual mortgage repayments by multiplying their outstanding mortgage by Bank of England Base Rate (using 5.00% as at 03/06/2008 as an example) plus 1.5% e.g. 6.5%.
Under normal circumstances, anyone 18 or over can apply. For full details of eligibility see our 1st Start lending criteria.
See below for our two 1st Start options - with different benefits to suit different buyer's circumstances. Simply choose the one you consider suits you best.
Our 1st Start mortgage rates
See just how good our rates are…
1st Start fixed
Enjoy increased borrowing potential and the security of fixing your repayments for a set number of years.
1st Start discount
Increased borrowing potential allied to a discount on our Standard Variable Rate for a set number of years.