Nationwide Building Society has today launched a mortgage range that lets families raise cash from existing properties to help relatives buy homes.
The Family Deposit Mortgage is aimed at those looking to help younger relatives onto the property ladder, to help those wanting to upsize and to help older parents wanting to move.
The new range has two-year and five-year fixed rate loans and two-year tracker rate mortgages with a £999 fee or no fee.
Rates start at 1.15 per cent for the two-year tracker and 1.20 per cent for the two-year fixed rate, both with a £999 fee, a discount of 0.09 per cent on the core product range.
The range is being sold through brokers and directly.
Existing Nationwide mortgage members can help other buyers onto the property ladder with a further advance.
Those remortgaging to Nationwide and wanting to help family members get mortgages can also access the new mortgages.
Homeowners with no current mortgage, and those getting retirement income, can also use the Family Deposit Mortgage to raise deposit funds.
The person getting the extra capital must take out a product in Nationwide’s standard mortgage range.
All of the extra cash raised must be provided as a fully gifted deposit.
Those gifting the deposit to the buyer can access up to a total mortgage borrowing of 80 per cent LTV.
Nationwide head of mortgages Henry Jordan says: “Our Family Deposit Mortgage range has been launched in recognition of customer demand for a flexible and accessible way to use the wealth tied up in people’s homes. The aim is to help not only first time buyers but also home movers to secure their own property.
“We know that trying to raise a deposit can be the most significant barrier to becoming a home owner. This Nationwide range will enable families to give mutual support to each other and provide new options for home ownership.”