For first time buyers
It’s been a while since there have been any banks or lenders offering zero deposit options on their mortgages. However, a major high street bank have now launched a new product meaning first time buyers can effectively place no deposit. Sound interesting? Give us a call, we can help.
This does not constitute advice and advice should be sought in all instances before acting on it.
Your property may be at risk should you be unable to maintain any agreed mortgage payments over the term agreed.
The “Family Springboard” Mortgage
The Family Springboard mortgage by Barclays, offered a 5% deposit to first time buyers, coupled with a savings investment, from a “helper”, usually from the buyers parents and usually equal to 10% of the property purchase price.
With a revamp, this product now doesn’t require any deposit, just the 10% savings investment!
Savings are returned to the investor after three years, if they wish, with interest, provided the mortgage payments have been maintained fully.
The 5% deposit can still be invested as an alternative option to gain access to better mortgage rates. Samples mortgage rates:
- No deposit – 3 year fixed – 2.99%
- 5% deposit – 3 year fixed – 2.79%
The bank of “mum and dad”
Data by Experian shows that 25 percent of Britons over 55 have helped their children to buy a property. This is despite many parents not having financial security themselves.
This product aims to combine the resources of the family as a unit, helping first-time-buyers get onto the property ladder without having the difficulty of raising their own deposit, and also not leaving the parents out of pocket in the long-term by having a structured plan for them to get access to their money again.
Do you qualify? Speak with Chris
Dental & Medical Financial Services are specialist mortgage advisers. Contact Chris for a free, no obligation appraisal and to see if you qualify for this zero deposit mortgage.
Tel: 01403 780 770