West One enhances second charge products to support BOMAD
West One has launched an initiative to support the ‘Bank of Mum and Dad’ (BOMAD) via its second charge mortgage range.
Rates will start from 3.99% at LTV’s up to 75%.
The range is designed to facilitate family-assisted purchases through a second charge mortgage; it can be used where borrowers wish to gift a deposit to family members looking to get onto the property ladder.
This follows on from recent research published by Legal and General that BOMAD continues to act as a driving force behind the recovery of the housing market: almost a quarter of UK property transactions are being backed by financial contributions from family members in 2020.
In addition, West One is reducing its second charge rates for self-employed borrowers, as well as introducing of a range of 2-year fixed rates both starting from 3.99%.
Self-employed borrowers who are the main income earner can now access West One’s lowest-priced second charge products, providing they can evidence minimum income of £40,000 via their latest SA302 and have been trading for a minimum of two years.
Marie Grundy, sales director at West One, said: “West One is always looking for ways to bring innovation to the mortgage market.
“Our Bank of Mum and Dad initiative highlights the flexibility of second charge mortgages and how they can work in tandem with the first charge market.
“This is particularly relevant at a time when there have been significant supply issues with higher LTV products in the mainstream market mainly affecting first-time buyers.
“In addition to helping the Bank of Mum and Dad, we are continuing our drive to support underserved areas of the market.
“Our latest set of changes will be of significant benefit to self-employed borrowers whose needs are often more complex and best served by a more bespoke approach to underwriting.”