Previously, borrowers needed to provide a 5% deposit or £5,000.
The deal is offered deposit-free at 5.5 times income for those with a salary of over £50,000, or 4.4 times income for a three-year fixed interest rate of 2.99%. After three years the deposit is returned to the helper with Bank of England Base Rate, plus 1.5% interest. With a 5% deposit, the rate offered is 2.79%.
Barclays’ research suggested 35% of buyers were forced to ask parents for help with their purchase, 20% of which see the money as a gift.
Raheel Ahmed, head of Barclays mortgages, said: “With over a third of young people still turning to their family for help with buying a home, we have increased the accessibility of the Barclays Family Springboard Mortgage. We want to offer more people a way to get on the property ladder and to walk through the door of their first home earlier than they perhaps thought.”
Jeremy Duncombe, director, Legal and General Mortgage Club, said “The Family Springboard is an innovative scheme, and with this update it will allow even more prospective homeowners to get onto the ladder. For family members too, this revision has benefits – allowing them to get credit interest on the amount they deposit, whilst protecting them from exposure to the increased Stamp Duty levies on a second property.”