A new building society which launches today is designed to help first-time buyers get on the housing ladder – with the help of their relatives.

The Family Building Society will allow up to 12 members of different generations of a family to chip in.

It has been described as the first major innovation in the sector for over 30 years.

Grandparents, aunts, uncles and other relations as well as parents can have an interest savings account with the mutual, where the sum deposit provides security for the mortgage.

The society also offers off-setting arrangements where the family member foregoes interest on savings so that the mortgage holder pays a lower level of interest; and a charge on a relative’s house to reduce the need for a larger deposit.

In addition, the society offers built-in protection, so that if the mortgage holder loses their job through no fault of their own, their share of the mortgage will be paid for up to six months.

Mar Bogard, chief executive of the Family Building Society, which is an offshoot of the National Counties Building Society, said: “This is an entirely new, focused and joined-up development in financial services that is designed to meet the changed financial landscape and a dependency on each other, for the family.

“Unlike the big banks, we don’t want to be all things to all people. We just want to serve families with particular needs, really well.

“We are living longer and need to provide for old-age care. Parents want to support their children into independence but have their own needs to consider. Young people want independence but often have student debt and find it hard to save for a deposit. Also they don’t want to be a further burden on their parents.”

The society is also offering a “low start” mortgage designed for people whose financial circumstances are changing – for example, through divorce or starting a family.

Mortgage repayments begin at 1.39% for the first six months, moving to 2.69% for the next six months, before gradually going to a variable rate of 4.79% after five years.