The lender has launched the deal up to 99 per cent loan to value (LTV). The deal requires a 20 per cent security, made up of the deposit and a charge on a family members’ main residence, or cash from the family member which will be placed into a Tipton Family assist savings account which pays 0.1 per cent interest.
The interest rate is 3.09 per cent fixed for five years. A 100 per cent LTV is available, with a rate of 3.39 per cent with a variable term. Family members receive their savings back, or can have the restriction removed from their property when the first-time buyer’s LTV has fallen to 80 per cent, either by an increase in the value of the property, or by paying down the mortgage balance.
The amount of deposit can range from 1pc to 10 pc, and the charge can represent the remaining security required, bringing the total to 20 per cent. For example, if the deposit was one per cent, the charge would need to represent 19 per cent of the purchase price.
Tipton said the deal provides a way for first-time buyers to get on the property ladder but can also help movers who want a high LTV mortgage.
It comes as the number of first-time buyer mortgages has dramatically shrunk, with Lloyds recently withdrawing its family support loan.
Cammy Amaira, sales and marketing director at the Tipton (pictured), said: “It’s increasingly becoming more difficult for first-time buyers to get onto the property ladder.
“The lockdown has made matters even more challenging as many lenders seek bigger deposits having withdrawn their higher LTV products from the market.
“At the Tipton we are fully committed to this market and the launch of our Flexible LTV Family Assist mortgage is designed to help borrowers obtain a mortgage without the need of a hefty deposit.”