Barclays Mortgages improves its ground-breaking first time buyer product, the Family Springboard Mortgage

• Barclays Mortgages makes it easier than ever for first time buyers to get onto the property ladder with the latest change to its Family Springboard Mortgage
• The Family Springboard Mortgage is now available with a five year fixed rate period and a term of 35 years – an increase from a three year fixed rate period and a 25 year term
• The product is still available with no deposit required from the borrower and only needs to be supported by a helper contribution (10 per cent of the purchase price) which is invested in a savings account and is returned to the helper with interest at the end of the fixed rate period

Monday 24th June 2019: Barclays Mortgages has announced another improvement to its revolutionary Family Springboard Mortgage, with 2019 marking six years since its initial launch. Having been first introduced in 2013, Barclays Mortgages has opened up the door to more first-time buyers and home movers than ever before by removing the need for them to put down a deposit when purchasing a home.

The new changes to the product, that come into effect from today (Monday 24th June), 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 per cent 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.”

High deposits place a significant burden on first time buyers and their parents, forcing many first time buyers into asking their parents for help when securing a mortgage.

Hannah Bernard continues: “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 per cent 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 per cent above the Bank of England Base Rate.*

For more information, please visit: http://www.barclays.co.uk/mortgages/family-springboard-mortgage

Notes to Editors

*Gross rate per year – 2.25% (2.27% AER)

Family Springboard Mortgage

About Barclays

Barclays is a transatlantic consumer and wholesale bank offering products and services across personal, corporate and investment banking, credit cards and wealth management, with a strong presence in our two home markets of the UK and the US.

With over 325 years of history and expertise in banking, Barclays operates in over 40 countries and employs approximately 83,500 people. Barclays moves, lends, invests and protects money for customers and clients worldwide.

For further information about Barclays, please visit our website www.home.barclays