I was very interested to read that Aldermore, a small bank set up in 2009, is to become the first British lender to offer mortgages to borrowers without a cash deposit since such loans were withdrawn during the financial crisis. I understand that this product will be launched during September and will allow home buyers to borrow up to 100% of a property’s value as long as they have a parent, grandparent or guardian willing to support the loan. The big High Street lenders have moved away from these 100% mortgages since the credit crisis but Aldermore are looking to mitigate its risk by stipulating that 25% of the loan is guaranteed by parent/grandparent or legal guardian through a charge on their own property. The deal will be open to borrowers across England and Wales up to a maximum loan of £250,000.00. The guarantee will fall away after 10 years. Whilst this product is currently only available to borrowers in England and Wales I think this is a very positive development and will assist first time buyers to get onto the ladder. I advise that I have written to Aldermore to try and encourage them to come into the Scottish market and I shall let you know as soon as I receive a response from them.
All in all a positive step.Lindsay Darroch Head of Property
The opinions expressed in this blog are of the author only and do not necessarily represent the opinions of Blackadders LLP.
Blackadders takes all reasonable steps to ensure that the content of this blog is accurate and up to date. The blog is not, however, intended as a substitute for seeking legal or other professional advice but rather as an informative guide to the services provided by Blackadders and topical legal developments. Blog users should always seek advice tailored to their specific situation. Consequently, Blackadders accepts no responsibility for any loss or damage suffered by anyone acting or failing to act on the basis of information contained on this blog. Downloading of material contained on this site is at the user’s own risk and all necessary virus checks must first be carried out by the user. Blackadders is not responsible for the material found on any web sites linked to this one and links to this site may only be made with Blackadders prior consent.
Blackadders owns the copyright in this blog and all material contained on it. The material on this blog may be downloaded for personal use only and must not be altered. Otherwise, Blackadders’ written consent is required before any material on this site is reproduced, copied or transmitted in any way.
Information passed to us via this blog is kept confidential and will not be disclosed to third parties except if authorised by you or required by law.
© Blackadders LLP 2020
Members of the Law Society of Scotland.
Blackadders Solicitors is a trading name of Blackadders LLP, a limited liability partnership, registered in Scotland No SO301600 whose registered office is 30 & 34 Reform Street, Dundee, DD1 1RJ. Reference to a ‘partner’ is to a member of Blackadders LLP.