barclays family springboard mortgage what is maximum !oan

littlerock

We should like to help our son get onto the housing ladder with his family. He has a good job but the problem is he works in London where the house prices for even modest homes are out of sight. We read recently about Barclays Family Springboard mortgsges which seemed promising especially as we are long term Barclays customers.

However on further reading it seems like the maximum loan would be £500k which would not be much use in most of London. He needs to be reasonably central because of his hours and his daughter recent!y started school. Does anyone have experience of it and or know if this is correct?

AnotherJoe

On the face of it you are looking for someone to contradict the info that's on the Barclays website ??

How much money can you loan for how long ?
How much do he and his partner (if any) earn?

muhandis

Well, the Barclays website does quite clearly state that the maximum loan size is 500k. I doubt anyone could credibly tell you otherwise.

Assuming you're providing the 10% deposit, that translates to a house price of 555k. Allowing for the fact that everyone's idea of a 'good home' and a 'good area' is quite different, you can get nice 2 bed flats in zone 2-3 quite easily for that kind of money that are a 5-10 minute walk away from the nearest tube station.

If he was looking for a house he might have to look a bit further from the station in zone 3 areas.

littlerock wrote: »

However on further reading it seems like the maximum loan would be £500k which would not be much use in most of London. He needs to be reasonably central because of his hours and his daughter recent!y started school. Does anyone have experience of it and or know if this is correct?

littlerock

The reason I asked was because I read about it in a Money column in a national paper last weekend and it made no mention of there being any upper limit. So I wondered if it had changed recently.

He works shifts and on call so cannot be too far from his job. His wife is a music teacher and hoping to get some work from home now their little girl has started school so they would prefer a house as less likely to disrupt the neighbours. A modest two bedroom in Zone 3 where he lives costs around £675k.

minimike2

muhandis wrote: »

Assuming you're providing the 10% deposit, that translates to a house price of 555k.

If they are using springboard then no, it doesn't. The 10% isn't a deposit, it is a surety.

At £500k max loan, the maximum house purchase price will be £500k.

muhandis

Cheers. I did think 555.5k seems an odd limit to have 500k makes much more sense.

minimike2 wrote: »

If they are using springboard then no, it doesn't. The 10% isn't a deposit, it is a surety.

At £500k max loan, the maximum house purchase price will be £500k.

getmore4less

The page says you can have a real deposit as they offer a max 95%LTV rate.

http://www.barclays.co.uk/mortgages/family-springboard-mortgage

amnblog

£500K is the maximum loan limit.

If your son cannot work within this limit he needs to think about Zones 4 5 and 6. He could perhaps also consider London Help to Buy.

AnotherJoe

amnblog wrote: »

£500K is the maximum loan limit.

If your son cannot work within this limit he needs to think about Zones 4 5 and 6. He could perhaps also consider London Help to Buy.

Or just not living somewhere where a small flat costs more than half a million pounds ?

minimike2

getmore4less wrote: »

The page says you can have a real deposit as they offer a max 95%LTV rate.

http://www.barclays.co.uk/mortgages/family-springboard-mortgage

The maximum LTV is 100%.

The 90.01% - 95.00% is just a lower rate if the borrower puts their own deposit in as well.

getmore4less

minimike2 wrote: »

If they are using springboard then no, it doesn't. The 10% isn't a deposit, it is a surety.

At £500k max loan, the maximum house purchase price will be £500k.

minimike2 wrote: »

The maximum LTV is 100%.

The 90.01% - 95.00% is just a lower rate if the borrower puts their own deposit in as well.

You are now contradicting yourself.

The max purchase can be more than £500k if they put in a deposit.