Aldermore has launched a Family Guarantee Mortgage and it is available up to 100% loan to value.
The mortgage rate is fixed for three-years at 6.48%. Parents, step-parents or grandparents will have to provide a guarantee against their residential property for the amount above 75% loan to value.
The charge on the guarantors property can be repaid at any time, providing the loan falls below 75% of the property value. The bank has a guarantee period of 10 years on the parent’s property and after this time there will be no further liability.
The Family First Guarantee Mortgage is being piloted by a limited number of estate agents over the coming months and if it is a success, is likely to be available via mortgage brokers.
Loans must be taken on a full capital repayment basis and the maximum mortgage is £250,000. The arrangement fees total £1249.
September 9, 2011