First-time buyers will be able to get on to the property ladder without needing any deposit under a new deal launched by a major bank.
Barclays Mortgages has revamped its “family springboard” mortgage, removing the need for first-time buyers and home movers to put down any deposit at all when buying a home using this mortgage.
The deal has previously allowed people to climb on to the property ladder with a 5 per cent deposit, provided that a “helper” – often the home buyer’s parents – puts cash equating to 10 per cent of the purchase price into a savings account linked to the mortgage. Under the new deal, only the 10 per cent contribution from parents is needed. This cash will be returned after three years with interest added – provided the borrower has kept up with their mortgage repayments.
The lender has also raised the maximum amount that home buyers can potentially borrow as a multiple of their incomel.
Customers with an income of more than £50,000 will be able to borrow up to 5.5 times their income.