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Barclays launches Family Affordability mortgage

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  • 19/06/2012
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Barclays launches Family Affordability mortgage
Barclays has launched a mortgage scheme that enables parents to use their wealth to help their children with mortgage affordability.

The Family Affordability Plan allows parents to help their children get on or move up the property ladder without being on the property deeds.

Both incomes are used to calculate the mortgage amount and the scheme is available across all the lender’s mortgage ranges, including NewBuy.

Andy Gray, head of mortgages at Barclays said: “Barclays’ Family Affordability Plan allows parent and child to pool resources and secure a larger loan, thereby helping generate much greater wealth and security for the child stepping on or up the property ladder.

“With our plan, the parents are a legal party on the mortgage because their affordability has been taken into consideration.

“If the borrower defaults, the borrower would be liable, as would the parents because they’re a legal party to the mortgage. The mortgage is secured on the borrower’s property.”

“If it got to the stage where we would have to repossess the property, it would be the borrower’s property. If there was any outstanding monies owing on the mortgage, then we would have to speak to the borrower and the parent to discuss how they would pay that back on a case by case basis.”

The lender said the scheme is not currently available on properties in Scotland or Northern Ireland.

 

 

 

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