Teachers Building Society has launched a mortgage option designed to enable families to help their relatives onto the property ladder.
Available on mortgages up to 95 per cent loan-to-value, the products allow families to gift a deposit to loved ones who are struggling to save up for one.
Family members are also able to remortgage their property to use as the gifted deposit, while existing customers can obtain a further advance on their mortgage for the same purpose.
A wide range of products is available, providing either the borrower or the person gifting the deposit is a teacher or education professional.
Teachers joins a range of lenders providing family mortgages as borrowers face years of saving before they can afford their own home.
Earlier this year, Nationwide launched a family deposit mortgage, while the Family Building Society and Barclays also offer similar products.
Simon Beresford, chief executive at Teachers Building Society, said: “At Teachers we are passionate about supporting teachers in their dream of owning their own home. With increasing house prices it can be difficult for people to raise funds for a deposit, and these options mean that family members can help out.
“In order to fully support teachers and education professionals throughout their career, anyone involved in the process can be a teacher - so we can help teachers supporting their children or teachers in need of support - and the relatives who can help include not only parents, but grandparents, siblings, aunts, uncles and more.”
Michelle Lawson, director at Portsmouth-based Lawson Financial, said she did not think family mortgages were necessarily what customers require.
“[Borrowers] still have to be able to afford the property in their own right,” she explained. “It really is affordability where people are struggling, rather than the deposit.”
simon.allin@ft.com
