The 5-year fixed rate product is aimed at first-time buyers and home movers who are able to access support from family members

Family Building Society has launched an enhanced version of its Family Mortgage, now available up to 100% loan-to-value (LTV).

The 5-year fixed rate product is aimed at first-time buyers and home movers who are able to access support from family members.

It offers an initial fixed rate of 5.19%, with no application or product fees, and income multiples of up to 5.33x loan-to-income (LTI).

Loans are available from a minimum of £96,000 up to a maximum of £750,000, with mortgage terms of up to 40 years to help support affordability.

The product is available for purchase applications only.

While borrowers can provide an initial deposit, this is optional.

The value of any deposit, combined with additional family-backed security, must equal 20% of the property value.

Under the scheme, family members can provide support in two ways, or a combination of both.

They can place savings into a Family Security savings account paying 3.05% AER variable, or allow the society to take a collateral charge over their property for the amount required to make up the 20% security.

The additional security remains in place until the end of the fixed-rate period and is then released, subject to conditions.

Support can be provided by parents, grandparents or other family members and does not require a gifted deposit.

Darren Deacon, head of intermediary sales at Family Building Society, said: We were one of the first lenders to involve family members in the process of helping their children onto the property ladder some 12 years ago.

Today’s launch of our enhanced Family Mortgage is a natural evolution in its development and reflects the help that is even more necessary today for first time buyers and next steppers, he said.

He added: Having built up significant equity in their own property over the years, we know family members are keen to help their children and grandchildren on the property-owning journey, by using a small part of this equity as security.