Mutual launches new mortgage for divorcees
Loughborough Building Society has launched the Fresh Start mortgage, a deal designed to help those facing relationship breakdown or significant relocation to buy a home.
The mortgage is targeted at those borrowers who are unable to find an affordable property without the help of a family member to guarantee a proportion of the deposit.
The mutual’s deposit guarantee scheme enables a parent or other family member to deposit a sum of cash into a savings account or allow a collateral charge to be registered on their home.
This guarantees up to 20% of the value of the property the mortgage applicant wishes to purchase, helping them to make a Fresh Start.
It means guarantors don’t have to gift away their savings to help a family member to obtain a mortgage, and their cash or property is only at risk if the borrowers fails to meet their mortgage repayments.
Ashley Pearson, business development manager at Loughborough Building Society, said: “As a mutual it’s important that we consider borrowers who are experiencing life changes that can mean they find it difficult to live in the home they want.
“We’ve found that family members are keen to help one another but sometimes they just don’t know how they can. This solution is becoming more and more sought after.
“So I’m very pleased to say, it’s now available to help those people and families who need it.”