You are here: Home - First Time Buyers - News -

Barclays launches family first-time buyer mortgage

Written by:
Woolwich, mortgages from Barclays, has launched a competitive new mortgage aimed at first-time buyers with small deposits.

The three-year fixed rate mortgage is aimed at first-time buyers and their families and requires a buyer to put down a 5% deposit to obtain a mortgage at 4.69%.

At the same time, a family member must place savings worth 10% of the property purchase price into a linked savings account, which can be withdrawn after the three year period is up.

Mortgage Advice Bureau director Andrew Frankish said he welcomed the announcement and hoped it would be followed by other major lenders launching new products at higher loan-to-velue (LTV) levels.

“Any high loan-to-value targeted at first-time buyers is good. The fact that it is Barclays is very important as well.

“We have had similar products with a parent guarantor from niche lenders but with Barclays coming in with this product it grabs consumers’ attention.”

First Service Financial director Jonathan Plant described the product as ‘promising’ and said it would be useful in certain circumstances:

“It has the advantage that Bank of Mum and Dad do not give their money away. “The return on savings accounts is so bad at the moment – if the money can be used to help offspring while getting it back at the end of three years it is a good thing.”

The deal, which will be available from 14 January 2013, requires the family member to deposit their savings into a Helpful Start Account with an interest rate of Bank Base Rate plus 1.5% (current pay rate 2%).

Mortgage payments must be kept up to date for the saver to withdraw their funds promptly.


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Six bank statement mistakes that can ruin a mortgage application

Being overdrawn and having a history of payday loans can be red flags to lenders when they...
Six bank statement mistakes that can ruin a mortgage application

Jargon Buster

When you take out a mortgage you will probably encounter a raft of jargon, some of which c...
Jargon Buster

Low deposit mortgage deals see dramatic rate cuts

Borrowers with a five or 10 per cent deposit are seeing significant reductions in the cost...
Low deposit mortgage deals see dramatic rate cuts

Guide to borrowing past retirement age

As an older borrower, you may be concerned that a lender will not offer you a mortgage pas...

Mortgage market biased against homeowners

Buy-to-let property investors are unfairly favoured in the mortgage market, an independent...

Should buy-to-let investors ‘go Dutch’?

The Netherlands is revealed as Europe’s top buy-to-let property hotspot

Private sector tenants in poverty double in decade

The number of private rented sector tenants in poverty has doubled in the last decade from...

Large mortgage broker firm launches with fees of over 1%

An insurance firm has launched a mortgage advice service

Second steppers targeting detached properties

Those living in their first home are increasingly looking to reduce the steps to their lon...

Mortgage Calculators