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Praise for shared cheap mortgage

Date: Mon, 22 Aug 2005

The home loan industry has been praised for its commitment to developing cheap mortgage products.

In particular, Moneyfacts has commended Norwich & Peterborough Building Society for its introduction of a shared mortgage that will allow first time buyers to take a step on to the property market.

The building society's "lend a hand" mortgage scheme allows children to join forces with their parents to help obtain a loan. However, the "child" must still be able to afford the repayments on at least 75 per cent of the loan.

A number of other lenders have also launched a products which allow offsetting of savings against home loans as well as specialist guarantor mortgages that could make parents liable for any missed repayments.

"There are other avenues open to first time buyers, for example mortgage lenders who will allow parents to act as guarantor for their child’s mortgage borrowing," said Rachel Mckay, Moneyfacts' mortgage researcher.

He added "Both Abbey and Cheltenham & Gloucester are offering two year fixed deals at 95 per cent loan to value which are available as guarantor mortgages."


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