Skipton Building Society is re-entering the 95% LTV market with a product aimed at first time buyers.
The product, ‘Mutually Exclusive’, will allow first time buyers to borrow larger amounts if their family members have already demonstrated a commitment to saving with the society.
Skipton says the product will restore a link between regular saving and lending entitlements that has disappeared during the boom of recent years.
“Mutually Exclusive rewards membership and reflects a link between savings and lending that has been missing from the market for too long. By doing what a mutual does best, we have been innovatively traditional,” says Skipton managing director Steve Haggerty.
If an applicant’s family has sufficient money invested with Skipton, then their maximum LTV allowance will be raised by taking a charge against savings held by a family member.
Family members need not directly contribute to the deposit costs, and still receive interest on their savings as usual, but their savings are used as a guarantee against the loan in order to raise additional finance.
The scheme includes Skipton’s standard mortgage products and loans which previously allowed a maximum of 90% LTV will be raised to 95%. Mutually Exclusive will launch on Monday 15 September.
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