Barclays extends fixed rate period of Family Springboard Mortgage

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Barclays Mortgages has made changes to its Family Springboard Mortgage.

Having been first introduced in 2013, the deal removes the need for first-time buyers to put down a deposit when purchasing a home.

The new changes to the product extend the fixed rate period from three years to five, with the term extending from 25 to 35 years. This means that in addition to first time buyers no longer needing to provide a deposit themselves – only a 10% contribution from a relative or guardian – they will now also be able to borrow a larger sum due to the extended term.

Hannah Bernard, head of Barclays Mortgages said: “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.

“Barclays own research has shown that many first time buyers view the money for a deposit as a ‘gift’ that doesn’t need to be paid back, therefore placing a significant levy on the bank of Mum and Dad. 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.”

Instead of gifting the deposit, the family helper opens a Helpful Start account linked to the mortgage into which they deposit savings equal to 10% of the final price of the house. After five years the money in the account is returned to the family helper with interest. The interest rate on the Helpful Start account tracks a margin of 1.50% above the Bank of England Base Rate.

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