Available to first time and subsequent buyers, the mortgage offers 100% to applicants over 25, with a rate of 6.48% for three years, with a £999 completion fee.
The product places a charge on the equity on the property instead of requiring a cash loan as a gifted deposit.
Charles Haresnape, managing director of Residential Mortgages at Aldermore (pictured) said independent research from ERSA confirmed that 70% of parents would be willing to release more than £10,000 from their property to help a family member get a foot on the first rung of the housing ladder.
“With Aldermore’s Family Guarantee Mortgage, parents won’t need to hand across a penny up-front, provided that they’re willing to stand behind their child’s loan,” he added.
Sally Laker, managing director, Mortgage Intelligence, said: “With the ‘Bank of Mum and Dad’ becoming ever more prevalent in today’s first time buyer market this spin on a guarantor product will be welcomed by our members as another product in their toolkit.”
Nigel Stockton, financial services director, Countrywide, said: “We always welcome loans like this for first-time buyers and we need good strong products along these lines for our 650 agency-based mortgage consultants.”
