Comparing the Barclays Family Springboard Mortgage + Advice Needed!

tain

Barclays have just changed their terms, so what used to be a 10% from the folks and 5% from the child can now be covered by just the 10% from the folks.

Link to the supporting document




How does the 2.79% then 2.99% APR compare to other products? I'm looking at other Barclays prices and they seem to be 2.99% then 3.99%, so it seems a good price.


But I can't work out from any of their documents as to whether that is repayment, interest, or both. The details on the website just says 'purchase only' which doesn't mean much to me when trying to compare.


Also, would this mean we would be locked in to Barclays mortgages for the period after the initial 3 years unless we're lucky enough for the price of our home to have increased sufficiently that the excess equity in it would now work out as our deposit? (I might not be wording that correctly...)


Finally they never mention the rate of interest on the parents loan. Should we presume that this would be peanuts?


I'm really struggling to work out if this is a decent deal, or if we would be a lot better off waiting another year and trying to get the deposit ourselves.

ACG

I think it pays a decent enough rate on the savings.
The mortgage will need to be on repayment.

Why not call up Barclays and have a chat with them? They should be able to answer all of your questions.

minimike2

Interest only is not available on this. Capital and Interest only.

The savings rate for the helper is Base+1.5%.

It is free of tie in after the initial rate ends and the money in the helper account is "unlocked" after the three years as long as all payments have been made to the mortgage.

The borrower would struggle to remortgage if the property value goes down so would have to either stay on the reversionary rate or see if there was a new deal on offer at the end of the three years.

tain

Cheers both, really helped clarify things. I'd like to talk to Barclays, but I want to have a word with the parents first, and I don't want to do that without all the facts as it's a huge thing to ask of them.