Available for first-time and subsequent buyers, the product lends 100% to the applicant, with a rate of 6.48% for 3 years, £999 completion fee and a minimum age of 25 for the borrower.
The benefit to the family guarantor is this is a charge on the equity on the property rather than a cash loan as a gifted deposit.
Commenting, Sally Laker, managing director, Mortgage Intelligence Holdings, said: “We’re delighted to provide our ARs and mortgage club members access to this innovative product.
“With the ‘Bank of Mum & Dad’ becoming ever more prevalent in today’s first-time buyer market this spin on a guarantor product will be welcomed by our members as another product in their toolkit.”
Nigel Stockton, financial services director, Countrywide, added: “This is one of the most innovative products aimed at first-time buyers available at the moment and we’re thrilled to be able to offer it to our customers.
“We always welcome products like this for first-time buyers and we need good strong products like this for our 650 agency-based mortgage consultants.
“The product comes with considerable benefits both for first-time buyers and those acting as guarantors and we hope to see more innovation like this in the homemover market.”
Charles Haresnape, managing director of residential mortgages at Aldermore, noted: “Independent research has recently confirmed that 70% of parents would be willing to release more than £10,000 from their property to help a family member get a foot on the first rung of the housing ladder.
“With Aldermore’s Family Guarantee Mortgage, parents won’t need to hand across a penny up-front, provided that they’re willing to stand behind their child’s loan.
“Providing a guarantee is a very practical and cost-effective way for equity rich parents to give their offspring a helping hand.”
