"We think that our 95% LTV Family Mortgage will help plug an obvious gap in the market."
The Family Mortgage requires the family of first-time buyers to provide savings or a charge on their own housing equity. A five-year fixed rate product is available at 2.99% with a £599 product fee and £175 application fee.
Additionally, the Society has announced rate reductions across its fixed and discounted range and an increase in LTV to 75% for owner occupier and 65% for buy-to-let products.
Keith Barber, director of business development at Family Building Society, said: “Even in this turbulent time, the housing market is seeing significant demand from first time buyers, but with many lenders restricting availability of mortgages to those with a large cash deposit, we think that our 95% LTV Family Mortgage will help plug an obvious gap in the market.
”This product is designed for those first-time buyers who have family who want to help out by pledging some of their savings (which can also be used to offset part of the mortgage balance and reduce monthly payments), or by providing a charge on their own housing equity.
“As the property market eases itself out of lockdown, we know that the increases in LTV and rate reductions across our range of fixed and discounted products will be welcomed by intermediaries as they seek more lender choice and competitive rates.”
