It will allow a builder’s cash incentive contribution to be included as part of the 15% homebuyer’s deposit requirements, from 24th November It is subject to a maximum cap on all cash incentives of 5% of the purchase price or valuation, whichever is lower.
Under the old rules purchase prices were reduced by the amount of the incentive. With the changes to the policy this will no longer be the case.
Andy Gray, (pictured) managing director of mortgages for Barclays, said: “Responding to feedback from the industry, we have reviewed our new build policy and have updated it to allow the use of a builder’s cash incentive within a customer’s deposit. We are making these changes to simplify our process as part of a renewed focus on, and commitment to, this important sector of the housing market.”
The announcement comes in the same week the bank said it was rolling out its Great Escape package to the buy-to-let sector. The offer was previously only available to the residential market.