As long as a family member contributes 10 per cent of the property purchase price from their own savings, FIRST-TIME buyers can borrow £500,000 with NO deposit at Barclays.

Barclays has extende its Family Springboard mortgage range so first-time buyers can get larger mortgages over a longer period of time

First introduced six years ago, the deals let home buyers borrow deposit-free by linking their mortgage to a friend or family member’s savings.

Borrower can get more money as yesterday, Barclays upped the fixed rate period of three years to five and extended the affordability assessment term of 25 years to 35.

Cominng with a fixed rate of 2.95 per cent, the fee-free mortgage allows home buyers to borrow between £5,000 and £500,000. It comes with a fixed rate of 2.95 per cent.

Barclays is also offering a five-year fixed rate of 2.75 per cent if the home buyer has a 5 per cent deposit to put in on top of the 10 per cent savings.

As a security for the home loan, the savings are locked away in a Barclay’s fixed term savings account for five years..

However it should be noted that if you miss your mortgage payments, your family’s money is at risk as the bank may hold onto the savings for longer than five years.

The mortgage works like this. The family member who stumps up the effective deposit sets up a “Helpful Start” savings account with Barclays once the bank has made a mortgage offer.

After the five years, whoever helped you with the funds will be refunded their 10 per cent plus interest.

This rate is set at 1.50 per cent above the Bank of England’s base rate of 0.75 per cent, meaning savers can currently earn 2.25 per cent in interest on their savings.

In comparison, the best buy five-year fixed rate savings account is currently 2.75 per cent from Gatehouse Bank.

The idea is that the homeowner will have paid down enough of their mortgage to be able to remortgage to a lower loan-to-value mortgage once the fixed term is up.

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