Newly launched Family Building Society has entered into a relationship with mortgage insurance provider Genworth, using its private mortgage insurance products to help launch a low start mortgage.
The National Counties Building Society member said it will use Genworth’s insurance policies in order to provide high loan to value mortgages to new customers.
The Family Building Society, launched earlier this month, is a mutual based on the proposition that “families can help each other financially through well-designed mortgages,savings and other products”.
It is also involved in a number of tie-ups. National IFA Chase de Vere was recently appointed to provide financial advice to the customers of the building society.
Key Retirement Solutions was also appointed as Family Building Society’s equity release partner.
Simon Crone, vice president of mortgage insurance Europe at Genworth, said: “While the launch of Help to Buy 2 the government has provided much-needed impetus in terms of the provision of high LTV mortgage lending in the UK, it has been apparent for some time that it was the building societies operating outside the scheme who were leading the way in terms of both product design and pricing.”
Mr Crone added that competition and choice in the high LTV lending bracket has improved in the last year, but warned that Help to Buy 2 is due to finish by the end of 2016.
He said: “It will be lenders like the Family Building Society that will hopefully remain at the forefront of the market not just now but well into the future and it is therefore vitally important that we have an exit strategy outlined for HTB2 well in advance of 2016. ”