At the same time the lender has announced rate cuts across its fixed and discounted mortgage range.

The return of the Family Mortgage comes as the building society experienced ‘high demand’ from first-time buyers who were struggling for options as lenders restricted availability of high LTV products.

Keith Barber, director of business development at Family Building Society said, “We think that our 95% LTV Family Mortgage will help plug an obvious gap in the market.

“This product is designed for those first time buyers who have family who want to help out by pledging some of their savings (which can also be used to offset part of the mortgage balance and reduce monthly payments), or by providing a charge on their own housing equity.”

Rate cuts

Meanwhile Family Building Society also announced it had increased the LTV for owner occupier and buy-to-let products, from 60% to 75% and 65%, respectively as well as slashing fixed and discount rates.

The changes which have come into effect today are as follows:

• Introduction of five year fixed 95% LTV Family Mortgage at 2.99%. £599 product fee and £175 application fee
• Introduction of 75% LTV owner occupier products and 65% LTV Buy to Let products
• Reduced rates across most fixed and discount products
• Extension of completion deadline to 2 February 2021
• Product fee for five Year Fixed Rate repayment mortgages reduced to £999.

Barber added: “As the property market eases itself out of lockdown, we know that the increases in LTV and rate reductions across our range of fixed and discounted products will be welcomed by intermediaries as they seek more lender choice and competitive rates.”