New Mortgage that allows you to borrow 100% and use your Parents home as Security!
A new mortgage product has arrived in the UK mortgage market which is revolutionary. Market Harborough Building Society has introduced a new mortgage product called the ‘Family Assistance mortgage’ that allows you to buy a house with no deposit if your parents agree to use their home as security. There is no minimum deposit and 100% of the house value can be mortgaged as long the home you are lending against has enough equity to provide the required security. The mortgage still has conditions on the Loan to Value set at 75% of both houses.
The benefits of the Family Assistance mortage is that it allows parents to help their children without giving them large sums in cash. This new product is aimed at boosting house purchases for new buyers. The bank of Mum and Dad has become more popular over the years in helping their children get on the housing ladder and this new product provides an additional option to support this.
The deal is currently priced at 3.99 per cent, a 1.5 per cent discount to the lender’s standard variable rate, and is variable for the full term of the loan. It comes with a 0.5 per cent arrangement fee, with a minimum of £1,250 payable, and early repayment charges of 3 per cent only apply in the first three years.