Guarantor mortgage products 'an interesting development'

A new mortgage product range has been launched by The Mortgage Works – a subsidiary of Nationwide Building Society – which allows a guarantor to cover up to 30 per cent of the purchase loan.

The deals were launched on March 9th 2010 and include a 75 per cent loan-to-value, two-year fixed-rate mortgage with a rate of 4.99 per cent.

Andy Pratt, chief operating officer at Alexander Hall, commented that the deals show "innovation" and could provide a useful way for first-time buyers to purchase a home.

He noted that, unlike existing guarantor mortgages on the market, the Nationwide product accepts that parents have "commitments of their own".

The mortgage provider is merely "trying to get a level of security that is appropriate", he stated.

Mr Pratt added: "It is an interesting development. That is the first time I have seen innovation in a product sense for first-time buyers for a good couple of years."

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2010-03-12 08:34:30 © Moneyextra.com