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Cheap mortgages for joint purchases

Date: Wed, 17 Aug 2005

A new cheap mortgage product aimed at helping first-time buyers is being launched by Norwich and Peterborough Building Society (N&P).

N&P's new home loan enables buyer's parents to become joint applicants to increase the chances of a mortgage being approved, especially given the rising price of starter homes.

The "child" will be expected to be able to afford to repay at least 75 per cent of the loan and the remaining amount will be covered by the parents' income.

However, crucially for capital gains tax, the parent is not named on the property deeds, although they are still financially liable.

"N&P recognises the obstacles facing first time homebuyers and has come up with a solution that should help at least some of those who are looking to buy their own property," said Gary Lacey, product manager for N&P.

He added: "Whilst there are a very small number of mortgages already existing to help first time homebuyers, our Lend A Hand scheme is unique in that it does not limit the first time buyer to one particular type of mortgage."


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