The new guarantor plus product will allow potential applicants to borrow up to 100 per cent of the property value, with 25 per cent of the loan secured with additional suitable security. This could be a charge taken on a parent's, family member, or friend's property. Alternatively, it could also be taken on a cash deposit placed with the Society.
Also, if applicants do not have sufficient income to cover the loan, the guarantor's income must be sufficient to cover the shortfall.
James Gilbourne, chief executive of Catholic Building Society said: "With this scheme parents don't have to remortgage their homes or hand over large deposits to help their children buy a home. With the introduction of the guarantor plus mortgage, we have reaffirmed ourselves as a niche lender with a focus on solutions for first time buyers.
"With the guarantor plus sitting alongside our shared ownership; key worker and homebuy schemes we now offer a full range of products designed specifically with the first time buyer in mind. We hope that this portfolio will meet all the current requirements that exist on the market," James concluded.
The Society's long term aim is to help all prospective borrowers to own a home of their own. This is especially true of those who in some circumstances, may be considered as disadvantaged - those on low incomes, single parent families, those with disabilities and those who may be in receipt of state benefits.
