12 Mar

New mortgage product 'shows innovation'

New mortgage product 'shows innovation'

A new mortgage product on the UK market shows innovation, it has been claimed.

According to Andy Pratt, chief operating officer at Alexander Hall, the loan, which is being offered by Mortgage Works - a subsidiary of Nationwide Building Society - could provide a useful way for first-time buyers to secure a property.

Unlike existing guarantor mortgages, it accepts that parents have "commitments of their own", the expert claimed, adding that it is merely trying to achieve an "appropriate" level of security.

The product, which could be of benefit to those seeking houses for sale in Yorkshire, was launched earlier this month and it operates on a 75 per cent loan-to-value basis on a two-year fixed-rate mortgage.

It comes with a rate of 4.99 per cent and guarantors need to agree to cover 30 per cent of the loan.

Mr Pratt said: "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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