Empowering First-Time Buyers Via Alternative Approaches to Lending
By Simon Glass, Head of New Business at Beverley Building Society
In an ever-evolving property and mortgage market landscape, the dream of homeownership remains a beacon for many, especially first-time buyers. As the Head of New Business for Beverley Building Society, I am thrilled to share insights into our innovative approach to lending, particularly focusing on our first time buyer specific Property Assist product.
First-time buyers often face a myriad of challenges, from high property prices and the trying to save for a deposit whilst renting. At Beverley Building Society, we understand these hurdles and have crafted the Property Assist product designed to ease the path to homeownership.
Property Assist goes beyond the traditional lending model by incorporating an innovative feature tailored to the specific needs of this demographic. Instead of following the traditional format of parents gifting money for a deposit, the applicants can utilise equity in a family member’s home which we use as security for the deposit thus allowing lending at 100% of the purchase price. We apply a charge on the supporter’s property for 20% of the purchase price up to a maximum of 50% LTV of the supporter’s property inclusive of any other mortgage/charge.
The supporter can be a parent, step-parent, grandparent or sibling and we ask the supporter seeks independent legal advice to ensure they understand the commitment they are making and the potential risks involved.
More details and information on this proposition can be found here (140kb pdf) or please contact our mortgage team on 01482 881510.
As we embrace alternative approaches to lending, the Property Assist product stands as a testament to our commitment to supporting first-time buyers. At Beverley Building Society, we believe that by challenging conventional norms and fostering innovation in lending, we can offer the opportunity for those that feel homeownership is out of reach.
For adviser use only. Please note this content has been supplied by our lender partner and as such, is their responsibility. No party shall have any right of action against Legal & General in relation to the accuracy or completeness of the information in this article.