Aldermore has unveiled a mortgage specifically designed to help first time buyers get a foot on the housing ladder.
The ‘Family Guarantee Mortgage’ is available up to 100% LTV. The mortgage has a three year fixed rate of 6.48% and parents, step-parents or grandparents will be asked to provide a guarantee secured against their residential property for the amount of loan above 75% LTV.
It will initially be piloted via three distributors (Connells Group, Arun Estates and 3mc) to potential homebuyers throughout England and Wales. Loans are available on a repayment basis only (no interest only) the maximum loan size is £250,000, and the minimum age of the borrower must be 25. There is a non-refundable booking fee of £299 and a completion fee of £999.
Charles Haresnape, managing director of rResidential mortgages at Aldermore, said: “Many first time buyers have become disenfranchised from the housing market because of the large deposit demanded by most lenders. We believe this is the single biggest issue facing first time buyers and it needs to be addressed head on if the UK’s housing market is to have a chance of recovery.