Andy Gray, Managing Director of Mortgages for Barclays, said:
“Springtime is traditionally a period of increased house buying activity and through our award winning Family Springboard we are pleased to be offering customers lower rates and greater savings when buying their property. We hope this will particularly make managing their finances a little easier for First Time Buyers in their first three years, while achieving significant savings at the same time.
“Together with the rate cuts we’re introducing a number of highly competitive 2, 5 and 10 years fixed rates to our mortgage range and our new 5 year fixed rate at 1.99% highlights our ongoing commitment to providing homeowners with access to very competitive rates. This rate is only available for a limited period, so customers need to act now to ensure they secure the best deal for them.”
Barclays has also announced significant improvements to its Family Springboard mortgage that will help make purchasing a home easier for first time buyers.
From 6 May, first time buyers obtaining the fee-free Barclays Family Springboard mortgage will see a stepped reduction in the interest rate they pay over a three year period, with a lifetime follow on rate of 2.49% + BBBR which represents a 100 bps reduction on the existing Family Springboard follow on rate.
Barclays Family Springboard Stepped Fixed Rate Mortgage is specifically designed to help customers to adjust to their new financial responsibilities as a homeowner with a reducing mortgage payment during the first three years of owning the property. This offers customers a £636 saving over the initial three year term.
The Family Springboard mortgage allows ‘Helpers’ to use their savings to help homebuyers secure a mortgage by holding 10% of the purchase price in a Helpful Start account. This enables the homebuyers to apply for a 95% LTV mortgage. After three years the money is released back to the ‘Helpers’ with BOE + 1.5% interest, providing that the mortgage repayments have been kept up to date.
Andrew Montlake, Director at Coreco Mortgage Brokers commented:
“The Springboard product shows that innovation can exist in the current environment and these improvements confirm that there are lenders out there that want to lend and support the first-time buyer market.
“The appeal to family members is that they know their savings are helping their children without giving them up entirely. Having the rate “step down” over the initial three year term also gives further comfort that the mortgage will remain affordable and the savings returned, with interest, after three years."
