The five-year fixed rate is priced at 5.19% and has no application or product fees.
The deal goes up to 5.33 times income, with a 40-year term available, and has a minimum loan to value (LTV) of 80%, with loan sizes available from £96,000 to £750,000.
The family mortgage is only available for purchase and an initial deposit is optional but not required.
The value of the additional security, along with any initial deposit, must be equal to 20% of the property value.
In order to offer their support, family members can place their savings into a Family Security savings account, which has interest at 3.05% AER variable, or allow the mutual to take a collateral charge for the amount needed to make up the 20%. They can also do a combination of both.
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The security backs the mortgage until the end of the fixed rate and is then released, subject to conditions.
Support can come from parents, grandparents or other family members without the need for a gifted deposit.
According to Criteria Brain, there are only seven lenders that can offer a family assist 100% mortgage and that is subject to product availability.
Darren Deacon, head of intermediary sales at Family Building Society, said: “We were one of the first lenders to involve family members in the process of helping their children onto the property ladder some 12 years ago.
“Today’s launch of our enhanced Family Mortgage is a natural evolution in its development and reflects the help that is even more necessary today for first-time buyers and next-steppers. Having built up significant equity in their own property over the years, we know family members are keen to help their children and grandchildren on the property-owning journey, by using a small part of this equity as security.
“Equally, we know that gifting a deposit isn’t always possible or practical, but families may have savings that can be put to good use. Our new Family Mortgage offers a route to homeownership that offers hope to those struggling to get on the property ladder and for growing families looking for their next move.”
