Barclays launch 'no deposit' mortgage deal

Over recent years, one of the main barriers to buying a property has been the requirement to provide a sizeable deposit. Borrowers have been forced to save up thousands of pounds in order to qualify for a mortgage, but now a leading lender has introduced a 'no deposit' mortgage deal.

Barclays has removed the requirement for first-time buyers and home movers to provide a 5% deposit with new changes to its Family Springboard mortgage.

Buyers can now get a property with no deposit

Back in 2013, Barclays Mortgage launched its Family Springboard mortgage product. This allowed first-time buyers to obtain a mortgage with a 5% deposit, as long as a relative or guardian was able to make a further 10% contribution.

Now, the High Street lender has removed the need for buyers to put down a 5% deposit as long as they can still provide 10% from a relative or guardian.

Recent Barclays research revealed that over a third of first-time buyers had to ask their parents to help to secure a mortgage. Of these, 20% who accept help see the money as a 'gift' that doesn't have to be repaid.

The Family Springboard mortgage is designed to remove this issue. A first-time buyer takes out a mortgage, and instead of gifting the deposit, the relative or guardian opens a Helpful Start account linked to the mortgage into which they deposit savings equal to 10% of the final price of the house. After three years the money in the account is returned to the family helper with interest.

Income multiples also increased for Family Springboard deal

Barclays have also announced that they will increase the income multiples for Family Springboard borrowers with an income of more than £50,000 from 4.4 times to 5.5 times their annual income.

Raheel Ahmed, head of Barclays Mortgages said: “With over a third of young people still turning to their family for help with buying a home, we have increased the accessibility of the Barclays Family Springboard Mortgage. We want to offer more people a way to get on the property ladder and to walk through the door of their first home earlier than they perhaps thought.

“Buying a first home is a hugely important step in everyone’s life and one that has unfortunately become tougher for many in recent years. When Barclays originally launched the Family Springboard mortgage in 2013 we made the decision to help both homebuyers and the family who wanted to support their children, but couldn’t just give away large sums of money.”