Tipton & Coseley Building Society has reduced the collateral charge and added an alternative option of depositing cash into a savings account for its 100% Family Assist mortgage.
The enhancements have been made after listening to broker feedback calling for more help for first-time buyers.
Its Family Assist collateral charge has been reduced from 35% to 20% on a family member’s property. The property owner will be required to take independent legal advice.
Cammy Amaira, director of sales and marketing at Tipton & Coseley Building Society, said: ‘First-time buyers continue to face a triple whammy of increasing property prices, lack of affordable housing and large deposit requirements.
“At the Tipton we recognise these continuing pressures and have enhanced our Family Assist mortgage in response.
“The enhanced product allows family members to assist prospective borrowers by either securing a charge against their main residence, or depositing cash into a Tipton savings account that will accrue interest and ultimately be returned to them.”
As an alternative to the collateral charge, the parent or family member can deposit 20% of the loan value in cash into a Tipton deposit savings account. The deposit will accrue interest and the parent or family member will be able to claim back the deposit once the balance is reduced to 80% LTV, subject to terms and conditions.
This latest enhancement follows a series of new lending capabilities announced by the Tipton. These include its first retirement interest-only mortgage and a buy-to-let product which allows borrowers to rent out their property with Airbnb.