Halifax’s guarantor mortgage allowed parents to act as guarantors for their children when buying their first home.
Halifax says the popularity of its other products, such as its Lloyds TSB Lend a Hand mortgage has overtaken the popularity of guarantor mortgages.
With its Lend a Hand mortgage, borrowers only need a 5% cash deposit, plus the backing of someone who will need savings equal to 20% of the property value.
The borrower’s deposit and the savings must equal 25% of the property value.
However, the offer is only available in branch.
A spokeswoman for Halifax, says: “We were a strong supporter of the first-time buyer market in 2009, representing nearly 50% of the shared equity, shared ownership market and driving new innovation like the Lloyds TSB Lend a Hand scheme which enables customers to get 95% lending through taking a charge on a parent or grandparents savings account.
“This drive continues in 2010 as we look to provide more support in new build and find ways to extend the Lend a Hand activity which already accounts for a third of first-time buyer lending in the LTSB channel.
“Given this new activity we are finding that the demand for guarantor mortgages is reducing and now represents a tiny proportion of new business’.”