Teachers for Intermediaries has launched a new joint borrower sole proprietor mortgage, aimed at first-time buyers.

The specialist intermediary lending arm of Teachers Building Society says the product is designed to help young potential homeowners “onto the property ladder with family support”.

The residential mortgage has a maximum 80 per cent loan to value, loan size £20,000 to £1.5m, with rates ranging from 2.90 per cent to 3.40 per cent.

The firm allows a maximum of four people per application, with a maximum of two providing financial support.

Wimborne-based Teachers says this mortgage allows “parents and grandparents to join their child or grandchild on a mortgage by including their income in the affordability assessment, increasing the overall amount that can be borrowed”.

It adds that older relatives then make monthly payments alongside the younger relation “but are not listed on the title deed as joint property owners, potentially avoiding the increased rates of stamp duty land tax applied to second homes”.

The product is open to first-time buyers from any profession through mortgage brokers.

It is also available to young borrowers who have “an irregular or fluctuating salary”.

The firm will also accept applications “from wealthy parents and grandparents who would like to provide financial support but whose own finances are complicated, with income based on a range of assets rather than ‘standard’ employment”.

Teachers says this residential product, for those whose income sources or regularity varies, has a maximum 80 per cent LTV, with a loan size ranging from £100,000 to £1.5 million.

Teachers Building Society head of product and marketing David Leek says: “A joint borrower sole proprietor mortgage enables family to help first-time buyers by increasing the amount they can borrow, making a regular monthly contribution without being formal owners. In many cases, young borrowers progress professionally and are later able to meet affordability criteria alone.”

Leek adds: “Even after years of saving first-time buyers can find price rises have outstripped buying power in affluent areas, which buying earlier with support can help avoid.”

Teachers Building Society was founded in 1966 by the National Union of Teachers “to help teachers to get onto the property ladder”.