Following on from last week’s blog regarding the struggles when saving for a house deposit, Barclays have a product which could help solve this problem called the Family Springboard Mortgage. You may have also seen the Halifax Mortgage Boost advert.
The Barclays scheme works by utilising the savings from a purchaser’s family or friends. The purchaser can take out a mortgage of up to 100% of the property purchase price with the condition a friend or family member must hold a 10% deposit in a Barclays savings account. After 5 years this deposit will be returned to the giftor in full along with the interest that is paid out monthly.
This proves to be a massive benefit for people who are looking to help someone buy a property, but do not want to give the deposit away.
A scenario where this product would be particularly helpful is (for example) if parents or grandparents are helping a child purchase their first home with a partner but they wanted to protect their deposit. The deposit is held in an account in the parent’s name and is therefore protected if the child and their partner were to split up.
If you would like to discuss either of these products or other alternatives further, please don’t hesitate to contact one of our brokers on 01920 821333 who will be more than happy to help.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.