The financial services group has teamed up with Britain's biggest housebuilder, Barratt, to offer financial support to parents trying to help their children get on the housing ladder.
Its £1bn fund will offer 12-year unsecured loans for parents to use as part of the deposit for their child's new home.
The scheme aims to bring back to the market first-time buyers, who have been priced out by mortgage lenders requiring deposits of up to 20pc.
The average age of an unassisted first-time buyer has jumped to 37, with lenders reluctant to offer higher loan-to-value mortgages.
This has led to "the bank of mum and dad" becoming increasingly prevalent as a source of funding for deposits. However, many parents cannot afford to support their children or only do so through the remortgaging of their own home.
The fund from Hitachi, part of the giant Japanese conglomerate, is designed to be an attractive funding option for parents and is understood to be the first of its kind.
It is envisaged that under the scheme, if a buyer finds an 80pc mortgage they will only need to provide a 5pc deposit. The remaining 15pc would be funded by the parent through an unsecured loan by Hitachi.
Initially, the loan will only be offered on new Barratt homes – which includes its Barratt, David Wilson and Ward brands – but the scheme could expand to other housebuilders.
The loans will be offered at a 5.4pc fixed rate. There will be no early repayment charges and unlimited overpayment is allowed without penalty. The scheme will be open to parents who are homeowners and have a "good credit history".
Melanie Bien, director of independent mortgage broker Private Finance, said: "Parents keen to help their children with a deposit, but who don't have spare cash available, could find this is the solution. The advantage of an unsecured loan is that it is separate from the mortgage, where your own loan-to-value is so important.
"The loan rate is competitive, plus payments are spread over 12 years. It is good to see innovation in the sector, with developers and lenders working together to find solutions to the problems facing first-time buyers struggling to get on the housing ladder."
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