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Bath BS launches 100pc guarantor mortgage

Robyn Hall

February 21, 2013

The Society has devised the 100% Parent Assisted Mortgage Scheme in order to open up the housing market to potential buyers who are currently barred from purchasing by the high deposits required by many lenders.

Dick Jenkins, Bath chief executive, said the 5.29% 100% loan is a logical step given the Society’s strong performance record with its 95% PAMS.

Jenkins said: “The 100% PAMS is intended to open up home ownership to a wider demographic in a responsible, sensible way, giving young people the opportunity to enjoy the benefits of home ownership just as their parents did.

“This is also a sign of confidence that the housing market is starting to slowly recover and that first time buyers will be a part of that recovery.

“Studies released in recent days show that it would take the average would-be first time buyer eight to ten years of really quite intensive saving to save for the average level of deposit required by most lenders these days. Lenders have to do something radical to break through this kind of constraint on the market.”

However Jenkins was keen to stress that this is not a return to indiscriminate 100% lending as seen prior to the credit crunch.

Jenkins said: “On the experiences Bath has had so far, I don’t think this is unduly risky. The bond between parents and their children works in such a way that nobody wants to extend themselves beyond what they can afford.

“The Bank of Mum and Dad has become a significant factor in the mortgage market over the last few years.

“This is a much more efficient way of assisting children onto the property ladder than other schemes which require a huge cash deposit.”


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