A new building society that aims to help young adults onto the property ladder by allowing family members to share the financial burden has launched today.
The Family Building Society, an offshoot of the National Counties Building Society, joins a growing list of lenders and “challenger banks” looking to take on the traditional high street lenders.
It will allow borrowers with a deposit of as little as five per cent to secure a lower interest rate if a family member opens a savings account as security. Another option allows parents to have a charge against their own home.
Family members will also be able to combine their finances in a savings account linked to the home loan. Chief executive Mark Bogart said: “Our Family Mortgage gets buyers on the property ladder sooner and keeps family members in control of their money. And because it’s a formal arrangement everybody knows where they stand.”