Barclays bring back the 100% mortgage

Barclays 100% Mortgage
4 May 2016

Barclays have gone and brought back the 100% mortgage - the first time any of the big lenders has done this in a long, long time.

Of course, the bank is looking at the market of first-time buyers who are struggling to get on the property ladder with other mortgage products. Anyone looking at this Barclays offer will be able to get a three-year fixed rate deal at 2.99%, and they won't have to put up their own money.

This is basically a rejig of Barclays' 'family springboard' mortgage, and all they've done is get rid of the need to put money down in advance.

However, there's still a catch of sorts - you'll need a 'helper', who has to put money in which equates to 10% of the house purchase price, which will be kept in a Barclays savings account for three years.

Great news if your parents have a bit of money, not so good if they're as skint as you are.

The 'helper' will eventually get their cash back, with any interest they've accrued, on the proviso that the person they are helping has kept up with their repayments.

Obviously, with this particular financial product, the risk is spread among two different parties, so it might not be worth the trouble for some and should be thought about seriously.

With that, this Barclays deal isn't the same as the old 100% mortgages, but seeing as recent reports states that The Bank Of Mum & Dad are actually the UK's tenth largest mortgage lender (the equivalent of, obviously), this might not cause too much worry for some families.

It is thought that families are going to lend their kids £5 billion this year, which is a dizzying amount of money.

For more information, have a look at Barclays' dedicated page.

TOPICS:   Mortgages

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