Mortgages Tips

First-time buyer mortgages with zero deposit. How they work and how you can get one


Cash-poor first-time buyers have been given a boost by the relaunch of Barclays’ mortgage range for customers without a deposit.

Barclays has revamped its Family Springboard loan, which offers young buyers the chance to get on to the ladder by using their parents’ wealth as a guarantee. 

The guarantor must place the equivalent of a 10pc deposit into a linked savings account for their children to qualify. After five years, parents have their cash returned with interest.

Barclays has offered this type of loan since 2013, but has overhauled its terms and conditions, meaning customers can borrow larger sums.

Buyers can now take out a mortgage with a term of up to 35 years, compared to the previous limit of 25. In effect, this means that customers can borrow more money, as repayments can be spread over a longer period.

Borrowers can also fix their interest rate for the first five years, meaning they have certainty of payments over the medium-term.

Jonathan Harris of Anderson Harris, a mortgage broker, said: “The Family Springboard offers significant assistance to first-time buyers trying to get on the housing ladder but who don’t have the necessary deposit. 

“Extending the term and range will give more choice to customers and puts Barclays way out in front on this, particularly as it will lend 5.5 times income to borrowers with a joint income of more than £50,000.”

Mr Harris said the rates on offer – including a five-year fix at 2.95pc – were competitive in today’s market.

Other providers to offer family-orientated deals include Lloyds Bank, which launched its Lend a Hand mortgage earlier this year, and Family Building Society, with its Family Mortgage.

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