Principality offers 95% mortgages for buyers with family savings

Thursday, 01 September 2011 02:15

Principality is offering 95 per cent mortgages to first-time buyers who have family savings available to them.

Wales' largest building society's Assisted First Time Buyer deal allows family members to use their savings to secure the mortgage of their child or relative.

Together, the buyer's deposit and the family member's savings must total 25 per cent of the property value.

Principality will then take a legal charge over the savings, paying 3.75 per cent AER, fixed until 31 August 2015.

The family member can not access that money during this time.

Christopher Johnson, mortgage manager at Principality Building Society, said: "The advantage of allowing parents to use their savings as security for the mortgage is that they retain ownership of their money. They will continue to earn interest on their savings, while the child gets access to mortgage rates usually available to those with a larger deposit."

Principality's First Time Buyer Mortgage is fixed at 4.49 per cent until the end of August 2015 before switching to the Standard Variable Rate.

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