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Market Harborough makes it easy for family to help FTBs

Currently most lenders require a relative acting as a guarantor for a young person&#39s mortgage to guarantee the full amount of the mortgage.

By contrast, Market Harborough will ask guarantors to cover only a portion of the mortgage.

As a practical example, Mr Smith earns £20,000 and wants to buy a house at £110,000 and has a deposit of £30,000. He needs to borrow £80,000. The society would normally lend Mr Smith £65,000 (3.25 x his income), which means he is £15,000 short of the loan amount he requires. Before the new scheme was introduced the society would ask the guarantor to guarantee the whole loan of £80,000. Now Market Harborough asks the guarantor to guarantee only the difference of £15,000.

These new arrangements apply to any of the competitive mortgage offers available from Market Harborough.

Market Harborough chief executive Philip Dearing says: “This change will help buyers realise their aspirations of owning a property and will no longer mean rented accommodation being the only option available to them &#45 we are also making it easier for relatives to lend a helping hand to younger people struggling to get into the property market.”

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