Saffron Building Society has launched a joint borrower sole proprietor mortgage for first-time buyers.
The product is a 5-year fix priced at 3.47% available up to 95% loan-to-value (LTV). It comes with a free valuation and no arrangement fee. There is a maximum loan amount of £500,000.
Anita Arch (pictured), head of mortgage sales at Saffron Building Society, said: “Many first-time buyers are unable to meet affordability assessments for the loan they need.
“This new product allows a ‘supporter’ – such as a parent or grandparent – to use their income to cover any gap in affordability but without being an owner of the property and without incurring additional stamp duty.
“Feedback from brokers tells us that there is increasing need for this type of product where an intergenerational approach provides a practical solution to getting more first-time buyers into properties and the benefits this creates.”