The Saffron Building Society is offering first-time buyers a new joint borrower sole proprietor mortgage.
With the product a family member can assist with affordability. Their income can be considered alongside that of the borrowers to help cover a shortfall required to purchase the property.
In time it is expected the proprietor’s income will increase so they will be able to afford the loan in their own right. At this point, the ‘supporter’ may be removed from the loan.
This new product is being offered at 3.47% fixed until 28/02/2025 up to 95% loan to value.
There is no arrangement fee.
Anita Arch, head of mortgage sales at the Saffron Building Society, said: “Many first time buyers are unable to meet affordability assessments for the loan they need. This new product allows a ‘supporter’ – such as a parent or grandparent – to use their income to cover any gap in affordability but without being an owner of the property and without incurring additional stamp duty.
Feedback from brokers tells us that there is increasing need for this type of product where an intergenerational approach provides a practical solution to getting more first time buyers into properties and the benefits this creates.”
