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The Resurrection Of The 100% Mortgage

13 May 2016



 

  • High street bank Barclays re-introduces the 0% deposit mortgage to home buyers
  • The last 100% mortgage was given in 2008.
  • This “family springboard” mortgage was introduced to “help youngsters get on the property ladder”

With the rise in student tuition fees & hefty deposits expected of potential buyers to purchase a property, it can be said that the younger generation of today have not received the best end of the stick.

With that said, these unfortunate scenarios have not been going unnoticed by the government.  Help to Buy ISA’s were introduced in December last year in an attempt to encourage youngsters to get onto the property ladder. The situation only looks to be going up with the return of the 100% family springboard mortgage from Barclays. (others have followed).

This type of mortgage removes the need for buyers to put down any deposit – instead, the buyer’s parents can contribute a 10% deposit on the house. As a result, the parent’s deposit will be returned to them with interest added after 3 years providing that the borrower has kept up with their monthly mortgage repayments.

In addition, Barclays have also increased the maximum amount that potential home buyers can borrow in accordance to their income.

One youngster stated “The weight of not being able to afford a property has finally been lifted off my shoulders. I thought it was going to be impossible”

Another said “I was lucky enough to have a fair amount of money saved for a deposit on a house but there was always an issue of lenders not being able to offer me a sufficient maximum amount based on my earnings. Thank you Barclays!”.

Let us know your thoughts on the resurrection of the 0% mortgage @agenttracker.


If you are a first time buyer intrigued by this new mortgage, call us for mortgage advice now at 020 8989 2556. 

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