Barclays has reintroduced the 100 per cent mortgage - but there’s a catch.
The bank’s so-called Family Springboard Mortgage is now available with no deposit required from the borrower but needs to be supported by what is described as a “helper contribution” equivalent to 10 per cent of the purchase price.
This sum has to be lodged with a Barclays deposit account by a “helper” - typically one or both parents of the person taking out the 100 per cent mortgage. After three years the money in the account is returned to the family helper with interest.
Previously a five per cent traditional-style deposit would have been required from the first-time buyer to secure a Family Springboard mortgage.
Barclays is also raising income multiples for this kind of mortgage if the customer has a salary of over £50,000 - the multiple rises from 4.4 times annual income to 5.5 times.