For first time buyers struggling to climb the property ladder, a new family mortgage has just come to the market enabling parents, grandparents and other relatives to effectively give them a leg up.
As the first new building society to be opened since 1981, its foundations began in 1896 and many see the return of the re-branded company as a welcome addition to the financial sector.
The Family Building Society offers revolutionary new home loans, allowing family members to effectively act as guarantors. First time buyers can now buy a home with as little as 5% deposit.
All too often, young buyers are forced to dip into the bank of 'mum and dad' to scrape together a large deposit for their first house together.
To apply for the new family mortgage, a buyer must be able to fund at least five percent of their deposit themselves. A family member can then use their own home as security for the remaining deposit of a further 20 percent if they are asset rich rather than having disposable cash at the ready.
A spokesman for the Family Building Society told Daily Mail reporters that multiple relatives can help buyers out at the same time and it is even possible for the cash to be deposited in a savings account to be held as security for up to ten years. The cash is only lost if the borrower defaults on their mortgage.
This way, generous relatives agree to waive their right to interest on their savings and in return, the borrowers only have to pay interest on the amount they are actually mortgaging.
If you need a conveyancer for your property transaction, contact our lawyers on 01772 882 888 or email firstname.lastname@example.org.
Ellen Court Solicitors