N&P Lends A Hand

17-Aug-2005

A new scheme aimed at helping first time buyers onto the first rung of the property ladder has been unveiled by Norwich and Peterborough Building Society (N&P).

The firm has announced its "Lend a Hand" scheme, which sees the parents of an aspiring homeowner join forces with the first time buyer in a scheme similar to a joint ownership agreement.

Click here to learn more about joint ownership, buying with friends or family

"In essence, the first time homebuyer (or 'child') and the parent become joint applicants on the mortgage and are both responsible for the mortgage debt," explains N&P's group product manager, Gary Lacey.

He added: "Whilst the 'child' must be able to support a minimum of 75 per cent of the required loan, based on N&P’s affordability criteria, the parent's income can be used to cover the remaining loan amount required."

To find out more about creative mortgages designed specifically for first time buyers click here

However, he went on to explain that, to avoid capital gains tax issues, the parent would not be named on the legal title of the property.

It is thought that, if the scheme proves successful with aspiring first time buyers, it could be taken up by a number of other companies in a bid to increase the number of first time buyers in the market.

See what’s in our unique, comprehensive and detailed joint ownership guide

Click here for advice on first time buyer mortgages or to find out how much you can borrow and how much it will cost you, from the UK’s leading High Street Brokers, Bradford and Bingley

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