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100% Mortgage Returns? Barclays Upgrade Family Springboard Mortgage


Barclays have today announced that their new and improved Family Springboard mortgage no longer requires the borrower to put in a 5% deposit, which in effect means that 100% of the property value can now be borrowed.

To access the deal however, prospective borrowers will need parents to deposit 10% of the value of the property in a savings account which is held without access for 3 years. This will then be returned to the parents at that time plus any interest earned as long as the mortgage payments have been maintained.

The product comes as a 3 year fixed rate which is competitively priced and a slightly cheaper rate can be obtained if buyers do still have a 5% deposit.

What is more, those with a joint or sole income of more than £50,000 will be able to borrow up to 5.5 times their income, subject to meeting the usual high affordability standards.

The savings account for parents to park their cash in earns interest at 1.5% above Bank Base, so 2% at present.

Andrew Montlake, Director at Coreco Mortgage Brokers commented, “The Springboard Mortgage concept was already a good one, but scrapping the need for borrowers to put in a 5% deposit at all is a game changer in the current environment.

“We have all seen how hard it has become for First Time Buyers to save for a deposit at a time that the cost of renting has also been increasing and this has put extra strain on the Bank of Mum & Dad to help their children to get on to the property ladder.

“Rather than just handing over money that they will never see again, this concept allows parents to help whilst still holding on to these funds and earning interest on it. Barclays is then able to take on in effect a 100% loan with no deposit put down, but with the security of 10% on account if there are any issues in the first 3 years.

“By combining this with a competitive fixed rate of interest and good income multiples for those earning over £50,000 I expect there will be a good level of demand and many prospective buyers and their parents will welcome the product.

“Of course there is an issue that there is still little being done for those borrowers, especially important key workers in areas like London, who may not have the benefit of parental assistance”.

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Andrew Montlake

Written by Andrew Montlake

Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994. As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company. As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking. Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.

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