{"id":5024061,"date":"2019-07-01T09:51:47","date_gmt":"2019-07-01T08:51:47","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=5024061"},"modified":"2019-07-01T09:51:47","modified_gmt":"2019-07-01T08:51:47","slug":"the-family-mortgage-taking-the-pressure-off-the-bank-of-mum-and-dad","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-au\/2019\/07\/01\/the-family-mortgage-taking-the-pressure-off-the-bank-of-mum-and-dad\/","title":{"rendered":"The\u00a0family mortgage taking\u00a0the pressure off the\u00a0bank of mum and dad\u00a0\u00a0"},"content":{"rendered":"

Gifting\u00a0a cash lump sum\u00a0for a property\u00a0deposit\u00a0is a consideration for many parents,\u00a0but for some,\u00a0it also carries a significant financial burden as they compromise their future to help\u00a0their children realise their dreams.<\/h3>\n

The act of \u2018gifting\u2019 a sum of money to be used as a deposit,\u00a0means that there is no expectation for it to be repaid.\u00a0Indeed,\u00a0most\u00a0mortgage lenders require written proof that\u00a0a gifted deposit\u00a0will not\u00a0ever\u00a0have to be repaid.<\/p>\n

For\u00a0parents\u00a0where gifting a significant chunk of their savings could negatively impact on their\u00a0personal\u00a0future, there is an alternative;\u00a0Barclays Family Springboard mortgage could\u00a0alleviate the pressure on the Bank of Mum and Dad.<\/p>\n

Families, or\u00a0even\u00a0friends, can act as mortgage guarantors and\u00a0deposit savings of 10% of the property price\u00a0into\u00a0a \u2018Helpful Start\u2019 Barclays account.\u00a0 The\u00a0condition is that the\u00a0money has to remain in the account for five years\u00a0untouched\u00a0before it can be released.<\/p>\n

Benefits for guarantor and first-time buyer<\/h3>\n

The\u00a0expectation\u00a0is that during these five years the first-time buyer should have paid enough off their mortgage so that they can remortgage to a lower loan-to-value mortgage and the \u2018deposit\u2019 is returned to the guarantor with interest.\u00a0 The account tracks 1.50% above the Bank of England base rate, which would mean\u00a0the guarantors\u00a0get a 2.25% return on their \u2018investment\u2019 as it stands today.<\/p>\n

In real terms that means a parent\u00a0putting\u00a0\u00a320,000 into the account, assuming the base rate stays the same, would get back \u00a32,252 in interest.<\/p>\n

A good deal for first-time buyers?<\/h3>\n

Barclays has recently stepped up\u00a0the Family Springboard\u00a0offering with a raft of changes; the fixed rate period of five years is an improvement on the three years previously offered. The mortgage term has\u00a0also\u00a0been extended from 25 to 35 years, meaning first-timers will be able to borrow a larger sum over a longer period to help keep repayments down.<\/p>\n

A five-year fixed rate is available at 2.95% with a 0% deposit or 2.75% if the buyer has a 5% deposit on top of the 10% savings deposited in a \u2018Helpful Start\u2019 account. The mortgage is fee free,\u00a0and the maximum loan is \u00a3500,000.<\/p>\n

Hannah Bernard, head of Barclays Mortgages, said: ‘The Family Springboard mortgage has been specifically designed to remove the financial burden from parents and to ensure they receive their deposit with interest at the end of the five-year fixed-rate period.’<\/p>\n

Listen to more, on mortgages, in the latest BuyAssociation podcast<\/h3>\n

This month\u2019s podcast will be covering everything you might need to know about Property Management &\u00a0Mortgages<\/a>.\u00a0We will be joined by Matt Eastham from Easthams & Co \u2013 Property Management and\u00a0Marcus\u00a0Docker from Visionary Finance. Giving us their\u00a0insider\u2019s view on everything you need to know in the\u00a0property management and\u00a0mortgages<\/a>\u00a0markets. Hosted by our very own Katie Walker.<\/p>\n

Covering our some of clients top questions and the latest changes in the\u00a0UK property<\/a>market. Market trends. Section 21. Letting fee bans. Generation Rent. Buying a property in a LTD company.<\/p>\n

\"Apple

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

Gifting\u00a0a cash lump sum\u00a0for a property\u00a0deposit\u00a0is a consideration for many parents,\u00a0but for some,\u00a0it also carries a significant financial burden as they compromise their future to help\u00a0their children realise their dreams. The act of \u2018gifting\u2019 a sum of money to be used as a deposit,\u00a0means that there is no expectation for it to be repaid.\u00a0Indeed,\u00a0most\u00a0mortgage lenders… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":5024064,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts\/5024061"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/comments?post=5024061"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/posts\/5024061\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/media\/5024064"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/media?parent=5024061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/categories?post=5024061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-au\/wp-json\/wp\/v2\/tags?post=5024061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}