Barclays Mortgages has made improvements to its Family Springboard Mortgage, making it easier for first time buyers to get onto the property ladder.
The new changes to the product, extend the fixed rate period from three to five years, with the term extending from 25 to 35 years. This means that in addition to first time buyers no longer needing to provide a deposit themselves – only a 10 per cent contribution from a relative or guardian – they will now also be able to borrow a larger sum due to the extended term.
Barclays said the product is still available with no deposit required from the borrower and only needs to be supported by a helper contribution (10 per cent of the purchase price) which is invested in a savings account and is returned to the helper with interest at the end of the fixed rate period.
“Barclays own research has shown that many first time buyers view the money for a deposit as a ‘gift’ that doesn’t need to be paid back, therefore placing a significant levy on the bank of Mum and Dad,” Head of Barclays Mortgages Hannah Bernard said.
“The Family Springboard mortgage has been specifically designed to remove the financial burden from parents and to ensure they receive their deposit with interest at the end of the five-year fixed-rate period.”
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