Family Springboard Mortgage Rate

Family springboard mortgage rates are for those in the UK looking assistance in purchasing a home. It is currently offered by Barclay's in 5-year terms below.

Family Springboard Mortgage Rate

A family springboard mortgage is a helpful option for those who require assistance in purchasing a home. This type of mortgage allows the borrower to rely on a family member for help, who can provide a lump sum of money or use a linked savings account as security for the mortgage. By providing a security, the family member can help the borrower access a mortgage with a lower interest rate and a smaller deposit requirement. The borrower can then benefit from a more affordable mortgage with lower monthly payments.

Check back weekly or favourite this page to keep an eye on the ever-changing rates. The table below is updated as of July 16, 2024 and rates are subject to change.

Family springboard mortgage rate

COMPANY TYPE TERM INITIAL RATE THE OVERALL COST FOR COMPARISON IS PRODUCT FEE LOAN TO VALUE (LTV)
BARCLAYS Family Springboard Mortgages Fixed Rate 5 years 5.80% 7.1 APRC £0.00 95%
BARCLAYS Family Springboard Mortgages Fixed Rate 5 years 5.84% 7.1 APRC £0.00 100%

 

Family Springboard Mortgage Rate FAQs

Is a family springboard mortgage a good idea?

With a Family Springboard Mortgage, a family member (usually a parent) provides a lump sum of money as security for the mortgage, but they don't actually give the money to the borrower. The borrower then takes out a mortgage with a lender, but only needs to provide a 5% deposit, rather than the typical 10-20%.

One benefit of this type of mortgage is that it can help borrowers who are struggling to save up for a deposit get onto the property ladder. It can also be a way for parents to help their children buy their first home without actually giving them a large sum of money.

However, it's important to remember that this type of mortgage may have higher interest rates than other types of mortgages, and the family member who provides the security will need to have a significant amount of savings. Additionally, if the borrower fails to make their mortgage payments, the family member's savings could be at risk.

Before considering a Family Springboard Mortgage, it's important to speak with a financial advisor and carefully weigh the pros and cons to determine if it's the right option for you and your family.

What is a family springboard mortgage?

A Family Springboard Mortgage is a type of mortgage available in the UK that allows first-time buyers to purchase a property with a smaller deposit than what is typically required.

With a Family Springboard Mortgage, a family member (usually a parent) provides a lump sum of money as security for the mortgage, but they don't actually give the money to the borrower. The borrower then takes out a mortgage with a lender, but only needs to provide a 5% deposit, rather than the typical 10-20%.

The family member's lump sum is held in a savings account with the lender and earns interest. After a set period of time (usually around three years), if the borrower has made all their mortgage payments on time, the family member's lump sum is returned with interest.

If the borrower defaults on their mortgage payments, the lender can take possession of the property and may use the family member's lump sum to cover any outstanding debt.

Family Springboard Mortgages can be a good option for first-time buyers who are struggling to save up a large deposit and have family members who are willing and able to provide financial support. However, it's important to carefully consider the risks and benefits before deciding if this type of mortgage is right for you.

How much can I borrow on a family springboard mortgage?

The amount you can borrow on a Family Springboard Mortgage in the UK will depend on a number of factors, including your income, expenses, credit history, and the value of the property you are looking to purchase.

In general, with a Family Springboard Mortgage, you will typically be able to borrow up to 95% of the property's value, meaning you would need to provide a deposit of at least 5%. The maximum amount you can borrow will depend on the lender you choose and their specific lending criteria.

It's important to note that while a Family Springboard Mortgage may allow you to borrow with a smaller deposit, you may end up paying a higher interest rate than with a traditional mortgage. Additionally, your family member who provides the lump sum will need to meet certain eligibility criteria, such as having a good credit score and being able to demonstrate that they can afford to provide the security.

Before applying for a Family Springboard Mortgage, it's important to speak with a financial advisor and carefully consider your financial situation to determine how much you can comfortably afford to borrow and repay.