Loughborough Building Society has added a new type of mortgage to its Family Assist range; a hybrid of the sole proprietor-joint borrower product and the family-backed deposit guarantee.
The new offer includes up to 100% loan when collateral is in place.
All parties involved in the loan will be responsible for the mortgage payments, and the owner need not be able to take out the mortgage on his own until all family members are ready and able to make the switch.
The family member who takes on the role of joint borrower can offer a deposit guarantee of up to 20% of the value of the property by depositing money into a specially designed account or by using a (second) security charge on their home, or a combination of the two.
Once the guarantee conditions are met, the cash sum will be returned to the assisting family member or their guarantee charges waived.
These mortgage products are available for the purchase or re-mortgage of properties in England and Wales.
Loughborough Business Development Manager Ashley Pearson says: “The blending of the two Family Assist product concepts makes perfect sense. We know from experience that families are often willing and able to help each other achieve their dreams of homeownership and this is a great way for them to be able to do so ”.