FIRST STEPS WITH STEP-UP - Coventry Building Society
FIRST STEPS WITH STEP-UP - Coventry Building Society
FIRST STEPS WITH STEP-UP - Coventry Building Society
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<strong>FIRST</strong> <strong><strong>STEP</strong>S</strong> <strong>WITH</strong> <strong>STEP</strong>-<strong>UP</strong><br />
Step-Up is a way for parents, guardians or other close relatives to support your clients when<br />
they are ready to purchase their home. In some circumstances it may also be suitable for main<br />
applicants needing help to purchase a new property following divorce or separation. Instead of<br />
just taking the main applicant’s income into account, the Step-Up service means we also take<br />
into account one other income when calculating how much we can lend. This could be a parent’s<br />
income, but guardians or other close relatives are also acceptable.<br />
Applicant requirements<br />
• Minimum lending age of the main applicant is 18 years and maximum lending age at the end of the mortgage is<br />
75 years.<br />
• The maximum lending age of the parent, guardian or other close relative at the date of application is 65 years.<br />
• A minimum of one year in continuous employment and a minimum admissible income of £15,000 is required from the<br />
main applicant.<br />
Availability and eligibility Residential and First Time Buyer<br />
• Available with all standard Residential and First Time Buyer mortgages, with a maximum loan of £250,000.<br />
• Available to first time buyers and may be suitable to help individuals purchase a property following a divorce or<br />
separation.<br />
• Not available on Buy to Let mortgages.<br />
Affordability<br />
With Step-Up, we take two incomes into account, that of the main applicant and of a parent, guardian or other close<br />
relative. If the parent, guardian or other close relative already has a mortgage, we will take their mortgage payment into<br />
account when calculating the amount that can be borrowed.<br />
It is important that all applicants can afford to repay their mortgage before we enter into a regulated mortgage contract<br />
with them, and we take a range of factors into account to determine how much an applicant can borrow. Our affordability<br />
assessment aims to ensure that after the mortgage payment has been made, there is sufficient net income remaining<br />
to cover financial commitments and additional outgoings, including general household and lifestyle costs. We will also<br />
consider the impact of possible future interest rate increases on the long term affordability of the mortgage.<br />
Due to the unique nature of the Step-Up proposition, our underwriters will assess each case individually and confirm the<br />
maximum amount we may be able to lend, subject to: a full credit score, affordability assessment, review of current credit<br />
commitments and our current lending policy. To obtain an underwriter’s decision please submit an AIP or if you have any<br />
queries, please call our Intermediary Support Team on 0845 7573612 (available Monday to Friday 9.00am to 5.00pm).<br />
Legal information<br />
All applicants including parent(s), guardian(s), or close relative(s), named on the mortgage and property deeds are jointly<br />
and separately responsible for all the obligations on the mortgage e.g. if it goes into arrears.<br />
It is important that your clients understand that there may be tax implications of being party to a mortgage where the<br />
property is not their main residence (e.g. there may be possible Capital Gains and other tax implications on the sale of the<br />
property while they are still named on the deeds).<br />
We are not able to provide tax advice, nor should our documentation be relied on in this manner. If your clients have<br />
concerns about the effect of property ownership on their tax status it is their responsibility to ensure that they contact<br />
their local tax office or a suitably qualified financial advisor.
Mortgage repayments<br />
Only a single Direct Debit will be claimed each month. The bank or building society account does not need to be in all the<br />
names on the mortgage.<br />
Residency<br />
All parties must live in and have the right to reside in the UK.<br />
coventryintermediaries.co.uk<br />
All information is subject to change. Product information is subject to availability and may change.<br />
FOR INTERMEDIARY AND PROFESSIONAL FINANCIAL ADVISORS ONLY. NOT FOR CUSTOMER USE.<br />
Our mortgages are provided by <strong>Coventry</strong> <strong>Building</strong> <strong>Society</strong> and/or Godiva Mortgages Limited. <strong>Coventry</strong> Intermediaries is a trading name of <strong>Coventry</strong> <strong>Building</strong> <strong>Society</strong>.<br />
<strong>Coventry</strong> <strong>Building</strong> <strong>Society</strong> is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority<br />
(firm reference number 150892 www.fca.org.uk). <strong>Coventry</strong> <strong>Building</strong> <strong>Society</strong>. Registered Office: Economic House, PO Box 9, High Street, <strong>Coventry</strong> CV1 5QN. Godiva Mortgages Limited<br />
is a limited company registered in England and Wales (with company number 5830727) and is authorised and regulated by the Financial Conduct Authority (firm reference number<br />
457622 www.fca.org.uk). Godiva Mortgages Limited. Registered Office: Oakfield House, Binley Business Park, Harry Weston Road, <strong>Coventry</strong> CV3 2TQ. ITL Mortgages Limited is a<br />
limited company registered in England and Wales (with company number (2321779) and is authorised and regulated by the Financial Conduct Authority (firm reference number<br />
302608 www.fca.org.uk). ITL Mortgages Limited. Registered Office: Oakfield House, Binley Business Park, Harry Weston Road, <strong>Coventry</strong> CV3 2TQ.<br />
06321G 03/14
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