Barclays have re-launched their ‘Family Spring Board Mortgage’ which effectively allows borrowers access to 100% mortgages.
The actual mortgage works in the usual way, but Barclays require a family member (or another generous soul) to deposit 10% of the property price into a Barclay’s savings account and leave it there for 3 years.
Not only is the mortgage on an extremely competitive rate at 2.99% (APR) fixed for 3 years, but the depositor receives interest at 1.5% above the Bank of England base rate – which at 2% is also pretty generous.
This innovative style of mortgage helps overcome 3 issues faced by “The Bank of Mum and Dad,” whose only other option is to “gift” the money over, and never see it again:
- Family members are able to recycle the deposit for siblings as it is released after 3 years and not tied into the property.
- The donor does not go on the mortgage at all, so their credit is not affected in any way
- As the money is not tied into the property it still belongs to the family members no matter what happens to relationships. This is handy if couples split up, and suddenly the money parents have put into properties has to be split with the “ex.”
Once the 3 years are up, the clever people at Barclays have estimated that the property will have increased in value enough for borrowers to remortgage on to an 85% product – another bonus! Assuming the mortgage is up to date at the end of year 3, the family member simply walks away from the arrangement.
I know there has been some bad press around this product, 100% mortgages are still seen as risky – but personally I like it. It ticks boxes and Barclays risk is only really 90%.
For information on this or any other mortgage, please call us on 01628 507 477.
Recent posts
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
Landlords could face a new tax this autumn
12 days ago
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.
Delayed Start Mortgages
6 Aug 2025
The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers.
Green Mortgages | Rewards and Benefits
4 Aug 2025
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
More information
Trusted by
