New mortgage set to help FTBs

A new mortgage product has been launched with the aim of helping first-time buyers (FTBs) onto the property ladder.

Persimmon Homes South Midlands has joined forces with the Mortgage Bureau to provide the innovative product.

It takes into account the borrower's income alongside one of their parents so that they can secure a larger loan.

Alison Reading, sales director at Persimmon Homes South Midlands, explained how the product works.

"With 1start our buyers can borrow up to ten times their income and we are offering further help to buyers of selected properties by paying the five per cent deposit," she revealed.

"To illustrate how this type of mortgage works, an applicant's income of £20,000 combined with a parental income of £40,000 with an existing mortgage of £50,000 and no other credit commitments would qualify for a loan of over £200,000, opening up a range of new options to house hunters," added Ms Reading.

Parents can even choose to contribute towards the monthly mortgage payments and can be included in the deeds if they wish.

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