Accessible via a simple online application process, the product will be available up to 100% of the purchase price or property valuation (whichever is lower) secured against the residential property of an immediate family member.
The amount of guarantee will be capped, meaning the guarantors liability cannot exceed the original agreed amount and the maximum guarantee period will be 10 years.
Commenting, Ben Thompson, managing director of the Legal & General Mortgage Club, said: “The housing market feels like a tough place to be right now if you are trying to get on the property ladder as house prices seem high and it’s more difficult to get a mortgage than it has been in previous years.
“It’s vital therefore that the industry does its best to provide innovative and inclusive products that help reliable first-time borrowers to realise their dreams of home ownership. This product with Aldermore is one of the ways in which we are seeking to do just that.
“First timers also face the prospect of missing out on the Government’s two year stamp duty holiday for FTBs of properties under £250,000 introduced in March 2010 if they do not act before March 2012.
“With this tax break potentially worth up to £2,500 it is not to be scoffed at especially in such a tough economic climate. Our Guarantor mortgage is one way we can help FTBs to take advantage ahead of the deadline.”
