Aldermore has recently created a pathway for those who could not afford that first home, to now enter the housing market.  A 100% mortgage loan product is now available from the struggling bank.  The special scheme is going by the name Family Guarantee Mortgage.  It is on the table for first time home buyers and those who are moving and over the age of 25.  The mortgage loan’s special condition is the family home must be put up for collateral, for all borrowing totaling more than 75%.

England and Wales are the first regions of the UK to see a deposit free mortgage loan product.  This is the first product of its kind since the property prices’ demise back in 2008

Charles Haresnape, Aldermore's managing director of residential mortgages, made the point that high deposits required by most high street lenders made reaching the property ladder an impossibility for those who are trying to acquire their first property.  This loan product, with the assistance of a family member, makes owning a home more of a possibility.  

Haresnape added: “We believe this is the single biggest issue facing first-time buyers and it needs to be addressed head on if the UK's housing market is to have a chance of recovery.

"Family support in the form of gifted deposits has become commonplace and is widely accepted by most lenders. The Family Guarantee Mortgage gives much greater flexibility, enabling guarantors to retain savings and instead provide a guarantee, requiring no cash deposit.”

Borrowers will also be required to provide evidence of being able to afford the monthly payments from the onset of acquiring the loan.  Other members of the family could also be required to show they could take over the payments in the event the original borrower defaulted for some reason.