Mortgage worriers 100 percent pilot scheme launched. A mortgage scheme offering families, couples and first time homebuyers the opportunity to borrow the full cost of their property has been launched by Aldermore.

 

The new lender for home owners and small businesses, is offering the so-called 100 per cent mortgage at an interest rate of 6.48 per cent, this mortgage deal is fixed for three years.

 

It's called "The Family Guarantee Mortgage" … available to first-time home-buyers and movers aged over 25 - the deal requires a relative to guarantee any borrowing above 75 per cent by putting up the family home as collateral.

 

It is the first bank to offer the controversial “deposit free” mortgage in England and Wales, three years after it became extinct in the wake of the credit crunch when property prices collapsed.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

We mentioned earlier that last month Northern Bank,(Northern Ireland) started offering borrowers the chance to buy a property without any savings behind them. Critics pointed out the loans were irresponsible, placed young people in a potentially difficult financial position and over inflated the rental market. However the supporters said it was one of the few ways that first time buyers, struggling to get a foot on a property ladder, would be able to achieve the dream of owning their first home with this new mortgage offer.

 

Charles Haresnape, Aldermore's managing director of residential mortgages, said large deposits generally required by the majority of high-street lenders had resulted in first-time buyers becoming "disfranchised" from the housing market.

 

“We believe this is the single biggest issue facing first-time buyers and it needs to be addressed head on if the UK's housing market is to have a chance of recovery,” he said.

 

"Family support in the form of gifted deposits has become commonplace and is widely accepted by most lenders.

 

“The Family Guarantee Mortgage gives much greater flexibility, enabling guarantors to retain savings and instead provide a guarantee, requiring no cash deposit.”