Mortgage Solutions | 02 Nov 2009 | 07:00 Stephen Quigley
Bath Building Society has urged more lenders to follow its example and offer products which allow first-time buyers to gain access to the housing market.
The lender said it has carved a niche for itself through its first-time buyer products,
which include a Parent Assisted Mortgage (PAM) and a ‘Buy For Uni' Mortgage.
PAM uses a collateral charge over some of the equity from the parent's home to offer a 90% LTV mortgage to young professionals.
Buy for Uni, which is offered up to 100% LTV, allows students and their parents to
purchase a property jointly.
Gill Orchard, mortgage support manager for Bath Building Society, said other lenders needed to be innovative and offer products which help people onto the market.
She added: "We are continually making changes to the products which will help first-time buyers further. We recently decided to use income from renting a room in the property to cover part of the mortgage amount, allowing us to top up the applicants' income. Other lenders need to do their bit."
Paul White, consultant at Belgravia Insurance Consultants, said it believed that lenders need
to continue developing products for young professionals in order to ensure a healthy mortgage
market.
Click here to view our questions and answers page
|
|
|
