Aldermore plan an addition to their 100 per cent LTV mortgages.

Aldermore are looking to add a new product option to their family guarantee mortgages. In September last year Aldermore were the first to launch a 100 per cent LTV deal since the onset of the credit crunch. It offered a 3 year fixed rate mortgage at 6.48 per cent. Under the terms of the deal parents, step-parents or grandparents provide a guarantee secured against their residential property for the amount of loan above 75 per cent LTV.

A new 100 per cent loan to value mortgage will be launched in the next few months, which will require the borrower’s parents to deposit savings with the lender rather than taking a charge on their property. Aldermore have said that it will pay a competitive rate of interest on the savings and, when the LTV on the mortgage falls below a certain level, which they currently advise to be around 75 per cent, then it will release the money. Charles Haresnape, managing director of residential mortgages at Aldermore commented saying that the details have yet to be being worked out but it is fully expected that the lender will bring the product to market this quarter.

He added that Aldermore see their new deal as giving parents another option, and so if they don’t want to gift a deposit to their child or have put a charge on their property, they can place their savings with the lender in lieu of a deposit while still retain ownership of them. He advised that Aldermore will continue to look at various options for first-time buyer mortgages and, they hope to help revive the first-time buyer market by sending out a positive message to consumers.