Nationwide has introduced what it calls a ‘Family Deposit Mortgage’ in a bid to help first time buyers.
It is aimed at FTBs’ family members who already have mortgages with the lender.
“Borrow against part of the equity in your home, and you can gift that additional borrowing to a family member as a deposit on a home of their own. If you’re with another lender and thinking of moving your mortgage to Nationwide, the idea’s the same – you’re free to gift that additional borrowing to a loved one to help with a home purchase” says promotional material for the new mortgage product.
The definition of ‘family member’ is wide, including children, step-children, spouses, civil partners, parents, brothers, sisters, grandparents and grandchildren.
“All we ask is that they buy their first home – or move house – with a Nationwide mortgage” says the lender.
The new product has provoked some criticism.
On social media, market commentator and buying agent Henry Pryor described the scheme as “a product scraped from the very bottom of the barrel of ideas of how to keep lending.”