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Jenny your nephew could get his parents or your self to guarantor the deposit. There are lenders out there now that will allow a family memeber to use a portion of their home as the deposit. You are only liable for the amount you want to guarantor. Eg if the house he buys is $300k. You may consider to “pledge” 10% or 20% of the purchase price 30 or $60k. If he defaults then you would be liable for the deposit only and not the full $300k By using a 20% pledge then mortgage insurance would not apply and a main stream bank would look at it if his profits could service the loan. I hope this helps.
[email protected]We have lenders who will go past 80% low doc with out mortgage insurance. How ever the rates are higher and exit penalties can be steep.
Most lenders or should I say call center personal do not know how it is calculated. It is done via the computer and is very complex. They use the rate you are on, what the rate is now and what they may have earned by you staing on that rate. If the current rate is higher than what you fixed it for you may receive no penalty or even a refund(ha ha) If the rate is lower than what you have fixed it for then your penalty will be higher. The penalty should not be that much with only 4 months to go. Contact me on [email protected] if you have any further questions.
