Bradford & Bingley mortgages consider first time buyers

Bradford & Bingley mortgages are to take first time buyers into consideration, following a report by the company studying the trends in the market.

The company's annual First Time Buyer Report shows that first time buyers are increasingly relying on their parents to purchase a first home, with 16 per cent given or lent money for a deposit.

Nearly ten per cent of first time buyers are buying their property together with their family while eight per cent rely on their family to cover associated costs including stamp duty and furniture.

Bradford & Bingley has therefore launched two exclusive competitive products for first time buyers: a two-year discounted 100 per cent mortgage, funded by Bank of Ireland; and a five per cent cashback deal with low fees funded by Lloyds TSB.

The company has also suggested general measures for parents to take to ensure that the burden of helping their children out is not too heavy.

Guarantor mortgages are one option, with Bradford & Bingley's research showing that one in five already use a parent as a guarantor on their mortgage.

Offsets, where parents put their money into a relevant savings account and offset it against their child's mortgage, are also a good way to reduce the interest payable on the mortgage but still retain access to their money if it is needed, the group recommended.