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

Leaseholder   Web Larger

Housing Secretary Angela Rayner has announced a new measure to protect leaseholders in England and Wales from high fees and poorly regulated property management companies.

Your First Home   Web Larger

Saturday 26th September, Andy Burnham announced a new equity loan scheme called “Your First Home”. The scheme, which will be confirmed at next month’s budget, is aimed at first-time buyers looking to purchase a new-build property from a developer signed up to the scheme.

lost job web larger

Losing your job or finding yourself ‘between jobs’ is, unsurprisingly, a stressful place to be. Keeping a cool head and taking action is important.

Deals of week web larger

Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.

Call us for more information: 01628 507477 or email: team@mortgagerequired.com.

Flats 40 Higher Than Houses   Web Larger

This price gap between the cost of houses and flats is the biggest it has ever been. Houses are now costing 1.7 times more than a flat, which is 0.4 times higher than 10 years ago

Take a look at our list of houses vs. flats per area.

Are Rates Increasing   Web Larger

We have seen several lenders increase their mortgage rates over the last couple of weeks. This suggests mortgage rates are likely to rise.

Although nothing is set in stone, lender repricing, rising swap rates, and continued economic uncertainty suggest borrowers should prepare for higher mortgage costs.

Ai Enhanced Images   Web Larger

According to data from House Buyer Bureau, where over 900 UK homebuyers were surveyed, 54% of people said that they immediately ruled out digitally enhanced property listings.

April Mortgages   Web Larger

April Mortgages - only accessed via a mortgage broker - offers first-time buyers, renters, and home-movers the option to borrow up to 7 times their income on its longer-term mortgages.