Barrat and Hitachi link up to help FTB's

Posted on 17 January 2011 by Drew

Be the first to comment

Housebuilder Barratt has teamed up with Hitachi Capital to offer parents a new way of helping their children get on to the property ladder.

The UK arm of the Japanese conglomerate is offering an unsecured loan to parents of first-time buyers purchasing a Barratt home to help them raise the high deposit mortgage lenders are currently demanding.

The buyer still needs to find 5% of the value of the property to put down, but their parents can borrow the equivalent of 15%, to give a total deposit of up to 20%.

Parents can borrow up to £50,000 over 12 years through the scheme, and they will be charged interest at a fixed rate of 5.4%. There are no early repayment charges and unlimited overpayments can be made at any time.

The maximum amount people can borrow through the scheme is significantly higher than the £25,000 that can be advanced through a personal loan.

The interest rate is also nearly 2% lower than the current best-buy personal loan rate, while it also compares well with long-term fixed rate mortgage deals.

The groups believe it is the first product of its kind to enable parents to raise large sums of money to help their children buy a property, without them having to remortgage or take out a second charge loan on their own home.

Copy from The Press Association.

Categories: First time buyers, Mortgages


Post a Comment

Please keep your comments relevant. Charcol reserves the right to edit or delete comments.

The blog postings on this site solely reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them. We may contact you in response to your comment – by submitting your comment, you are consenting to this.

To find out more about how we collect, use and protect your data, please read our privacy policy.

You are currently offline. Some pages or content may fail to load.