"As a mutual it’s important that we consider borrowers who are experiencing life changes that can mean they find it difficult to live in the home they want."
The Loughborough says that alongside first-time buyers it has seen others faced with similar issues, such as new domestic situations meaning they are not able to find a suitable property which they can afford without the help of a family member to guarantee a proportion of the deposit.
In the case of relationship breakdown, it could also mean that the family home may not need to be sold and their children may not need to move schools and away from their friends and other family members.
The Fresh Start mortgage will sit alongside the first-time buyer family deposit and Family Assist Buy for Uni products on its guarantee scheme.
The scheme enables a family member to deposit a sum of cash into a savings account, or allows a collateral charge to be registered on their home to guarantee up to 20% of the value of the property that the mortgage applicants wish to purchase.
Ashley Pearson, The Loughborough’s business development manager, said: “As a mutual it’s important that we consider borrowers who are experiencing life changes that can mean they find it difficult to live in the home they want.
"We’ve found that family members are keen to help one another but sometimes they just don’t know how they can. This solution is becoming more and more sought after. So I’m very pleased to say, it’s now available to help those people and families who need it.”
