100% Mortgage Is Back
The ‘zero deposit’ option has been missing since 2008. In 2014, 52% of first time buyers relied upon financial help from their families in order to climb onto the property ladder. Barclays Bank has recognised this trend. This month, it launched a new 100% mortgage… the Family Springboard Mortgage.
 
Ray Boulger, of broker John Charcol, said: “It is the first true 100 per cent mortgage since the financial crisis.”

This is particularly significant as new research from Nottingham Building Society confirms that raising the deposit required to purchase a property is the biggest hurdle for half of all first-time buyers.
 
Is it as good as it seems? Well, 100% borrowing is available. Instead of a deposit, anyone taking out this mortgage needs a “helper”. This “helper” is required place funds equivalent to 10% of the property purchase price into a Barclays savings account. This account will be linked to the mortgage.
 
After three years, if the mortgage payments are up to date, the money in the savings account is returned, with interest.
 
So – funds equivalent to a deposit value are required. They are simply treated in a different way, being held by the bank instead of being invested within the property.
 
Jason Dyer of JTM Homes commented: “Barclays is the first high street bank to offer a 100% mortgage for many years. This step, together with the Help to Buy ISA launched last autumn should help people to think realistically about buying their first property.”
 
If you are looking to buy your first property, talk to the friendly team at JTM Homes. With specialist knowledge of the north London property market and offices in Highgate and Archway we can guide you through your choices of property and the process involved.