You don’t need us to remind you that getting onto the property ladder as a first-time buyer is tough. These days more and more people are relying on the bank of Mum and Dad to gather together their first deposit and get that first foot up.
Related: The Moneywise Mortgage Awards 2019 reveal the best mortgage deals in every category
If you're one of the many who fall into that camp, then we have some good news for you and your parents.
This week Barclays announced improvements to its Family Springboard Mortgage. Originally launched 6 years ago, the no deposit mortgage opened many front doors for first-time buyers.
All you need is a relative or guardian to contribute 10 per cent of the purchase price. This is held in a Helpful Start savings account and returned at the end of the fixed rate period with interest
The new tweaks to the mortgage mean that first-time buyers can now borrow more and pay if back over a longer period of time. The fixed rate period has been extended from three years to five, with the term extending from 25 to 35 years. The loan size can range from a minimum of £5,000 to a maximum of £500,000.
If you are able to put down a 5 per cent deposit on top of the 10 per cent contribution Barclays is offering a five year fixed rate of 2.75 per cent. For the no-deposit option they’re offering a five-year fixed rate at 2.95 per cent.
‘Since the launch of our Family Springboard Mortgage in 2013, we’ve been leading the way in offering more people the opportunity to step onto the property ladder earlier than they might have been able to previously,’ says Hannah Bernard, Head of Barclays Mortgages.
The mortgage is also great news for the bank of Mum and Dad, who can sometimes end up feeling the financial pinch when a loan becomes an accidental gift.
‘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,’ Hannah Bernard adds.
Related: The Loughborough Building Society mortgage allows buyers to borrow 5.5 times their salary
Could this mortgage be too good to be true?
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