Nationwide guarantor product is an innovation, says expert

Date:Thursday 11th March 2010

Andy Pratt, chief operating officer at Alexander Hall, declared that he was surprised by the originality of the product and the lender's knowledge of the needs of first-time buyers.

He said: "What Nationwide appreciates is that when you look at the bank of mum and dad, they have got commitments of their own, so they are now only looking for 30 per cent of it to be covered."

Figures published this month from the Bank of England show that the average cost of a two-year fixed-rate mortgage deal has fallen to its lowest level since July 2003.

Both HSBC and Santander recently made mortgage rate cuts which, according to mortgages channel manager at Hannah-Mercedes Skenfield, targeted a certain type of borrower.