Newcastle has launched a fixed rate offset mortgage at 5.40% specifically to help first-time buyers get on the property ladder.
The guaranteed offset product has been designed for first-time buyers whose parents wish to offer financial support by linking a savings deposit to their child's mortgage for five years.
The society says the product will enable parents to help their offspring purchase a more expensive property than they would normally qualify for. The parent or relative will also retain their funds at the end of the five years.
The mortgage offers a fixed rate of 5.40% for five years and has no completion fees.
Robert Hollinshead, chief executive at Newcastle, says: “We understand the problems facing first-time buyers, and that many parents or family members are desperately keen to help out. Offering cash is one way of doing this, but parents often tell us they would prefer to retain control of their money and to use it in a more tax-efficient way. We believe this product addresses these needs.”