Mortgage lenders are turning to borrowers' “Bank of Mum and Dad” to offset the risk of lending to cash-strapped first-time buyers.

The scarcity of mortgage funding in the credit crunch has made lenders much more wary of lending to borrowers who lack a big deposit. Only a few lenders still offer deals to borrowers who have not saved at least 10 per cent of the value of their new home.

However, Skipton Building Society has a new solution. It is offering a home loan to borrowers with only a 5 per cent deposit - as long as their parents put savings equal to 20 per cent of the asking price in a special account as a guarantee.

As part of the “Mutually Exclusive” deal, to go on sale next Monday, homebuyers applying for a £150,000 mortgage need only find a deposit of £7,500, but their parents, or a close relative, must hand over £30,000 in savings.

The cash cannot be touched until the mortgage is paid off or the buyer has built up additional equity in the house.

Mortgage experts expect other lenders to follow suit. Melanie Bien, of Savills Private Finance, the independent mortgage broker, said: “If lenders are going to move back into high-risk lending, they are likely to look for extra reassurance. Skipton's offer is likely to be followed by other lenders, who also will benefit from having the savings to boost their balance sheets.”

Other lenders are offering special mortgage deals in return for loyalty from customers to shore up their assets. Alliance & Leicester (A&L), Halifax, If.com, the Britannia Building Society and HSBC all offer cheaper home loans to borrowers who hold a current account with them. A&L reduces mortgage arrangement fees for some account-holders.

Debbie Hughes, of A&L, said: “We said at the start of the year that we wanted to increase our customer deposits, and this is part of doing that.”

The Skipton said that since many parents help children with a deposit, its scheme allows them to use money as a guarantee while still earning interest.

Jason Clarke, of Skipton, said: “There needs to be some sort of link between lending and saving. That's what building societies are all about.”

Some experts have criticised the deal, saying that since the savings account is ringfenced, the mortgage is effectively a 75 per cent loan-to-value deal.

Louise Cumming, of Moneysupermarket.com, the price-comparison service, said: “It's a 75 per cent mortgage by any other name. People need to scratch the surface.”

Ms Bien said that borrowers with a 25 per cent deposit could get a two-year fix at a rate less than Skipton's.

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