"We’ve found that family members are keen to help one another but sometimes they just don’t know how they can"
According to the lender, first-time-buyers are generally seen as the main category of those struggling to save a sufficient deposit, however, The Loughborough also recognises that quite often others are often faced with similar issues.
Fresh Start has been designed with those facing relationship breakdown or significant re-location in mind. Their new domestic situation might mean that they are not able to find a suitable property which they can afford without the help of a family member to guarantee a proportion of the deposit. In the case of relationship breakdown, it could also mean that the family home may not need to be sold and their children may not need to move schools and away from their friends and other family members.
The Deposit Guarantee scheme is where a family member, either deposits a sum of cash into a savings account, or allows a collateral charge to be registered on their home to guarantee up to 20% of the value of the property that the mortgage applicants wish to purchase. This means that the guarantors don’t have to gift away their hard earned savings to help a family member to obtain a mortgage. Only if the borrower defaults with their mortgage repayments will their cash, or property, be at risk.
Ashley Pearson, The Loughborough’s Business Development Manager, said “As a mutual it’s important that we consider borrowers who are experiencing life changes that can mean they find it difficult to live in the home they want. We’ve found that family members are keen to help one another but sometimes they just don’t know how they can. This solution is becoming more and more sought after. So I’m very pleased to say, it’s now available to help those people and families who need it.”
