Barclays Now Offer 0% Deposit Mortgage Scheme
Prospective new homeowners in 2016 are up against some serious hurdles prior to getting a home – the property market is in probably one of the worst states for new buyers to date, and soaring housing prices are seeing mortgage deposits skyrocket to lump sums not achievable by most. Many families are being left high and dry at the mercy of landlords in the rental market, and government schemes aren’t even that much of an easy way out either.
Barclays bank has recently responded to this new homeowner crisis by introducing a new zero percent mortgage scheme – meaning borrowing for some, may be easier than ever before. However this does come with a catch, parents or legal guardians are asked to front the value of the deposit themselves. The money is held onto by the bank in a normal savings account and as long as repayments on the mortgage are kept up the cash is returned to parents or guardians plus interest after a three year period.
Of course this is obviously quite prohibitive to homeowners who do not come from affluent families, and as such isn’t much of a help if you come from a background where unfortunately your parents are still struggling financially. But it does represent some sort of release for those who can afford it – as long as they keep up with repayments no deposit is required.
According to statistics from Barclays themselves 35% of new homeowners get financial help from parents to get on the property ladder – Legal and General have also reported that one in four property purchases will have parents involved in some way in the UK housing market 2016. The move to standardize this is a welcome one for some, as it cuts out the hassle and allows parents to take the funds back after the three year period.
You can find more information on this scheme at http://www.barclays.co.uk/mortgages/family-springboard-mortgage. With the deposit being the most prohibitive factor for new buyers seeking a mortgage, this could very well be a breath of fresh air.