"Many young adults currently believe they will never become a homeowner and with the rise of house prices and the stagnation of the average salary, the story is only likely to get worse."
The First Time Buyer Family Deposit mortgage will allow first time buyers can to apply for a mortgage with help from parents, grandparents or a step-parent.
The new product comes in response to recent figures which show that increasing numbers of millennials are giving up on their dream of homeownership, with 85% of those surveyed citing the struggle to be able to save for a deposit as the main reason.
The mortgage comes with a range of options meaning that family members with a variety of circumstances could make it possible for prospective first-time buyers to buy their first home.
The building society will lend up to 100% of the value of the property subject to individual assessment of each application and a maximum of £300,000 and a minimum of £90,000. The actual amount available to be borrowed will be dependent on the applicant’s income after household expenses and other financial commitments have been deducted.
Gary Brebner, Chief Executive at the Loughborough Building Society, said: “It’s a sad reality that many young adults currently believe they will never become a homeowner and with the rise of house prices and the stagnation of the average salary, the story is only likely to get worse.
“Initiatives such as the First Time Buyer Family Deposit mortgage are a great way to give first time buyers that extra helping hand that they need to get a firm foot on the property ladder and should hopefully encourage more young adults who are thinking of buying that there are other options out there and help is available.”
