Family springboard mortgage

Garymand

Hi. We are first time buyers and my sister has agreed to put down the 10% deposit needed for the family springboard mortgage. I'm just a bit concerned as a financial advisor told me that I would struggle to find a solicitor who knows anything about this mortgage from Barclay's. Has anyone had any success getting this mortgage or do you have any tips on getting solicitors in place before we find a property? Thanks

ACG

Call a couple of solicitors, I am sure you will be fine finding a solicitor.

Garymand

Just wanted to keep you updated, we have had an offer accepted over the weekend and I am currently waiting for barclays to call me back. The estate agent have given me a quote for £1350 for their solicitor fees which I have no idea is good or bad. I'm hoping that's bad as it's my understanding that using this mortgage we need 3 solicitors involved, 1 or me, 1 for the bank and 1 for my sister who is putting the deposit down. I didn't think buying a house would be this confusing!

lewishardwick

Check what that fee covers and also, most people will recommend avoiding solicitors recommended by estate agents.

My Solicitor charged £790, plus searches and stamp duty etc.

ThePants999

+1 on avoid using the estate agent's recommended solicitors.

You're right that the bank need to be represented by a solicitor, but if you use a firm that's on the bank's panel for your own conveyancing, they'll typically handle the bank's interests as well for a small extra fee (or no extra fee if the mortgage product includes "free legals"). I'm surprised to hear that your sister would need a solicitor - my understanding of the springboard product is that she'd just have to lodge the money with Barclays for (at least) 3 years, doesn't sound like the sort of thing that would need a solicitor.

ACG

£800 Plus searches seems on the hgh side.

The firm I use charges about £600 + searches and stamp duty.
But if £1300 includes the searches then its not TOO bad, I would be 99% sure there is probably a £100-200 kick back to the agents built in there somewhere. Ask the agents/solicitor how much of the £1300 they are getting.

Garymand

Hi

Just to keep you posted where we are at. I've gone with a local solicitors and their standard fees are £720 and that includes the usual searches. They haven't processed a springboard mortgage yet but think that with the extra paperwork for my sister putting the deposit down it will be a further £50 on top.

My sister does need legal advice, this can be with the same solicitors firm as me but a different solicitor. We don't know how much this will cost but Barclay's think it's a couple of trips to the solicitors so shouldn't be that much.

Still need to organise someone to do my homebuyers report / survey but I think I've found someone local who is charging £400 (or £525 for a full structural survey).

Barclay's don't seem to be rushing to get the paperwork completed considering I'm asking for 90k but I'll keep on at them.

busybee100

Hi I've posted on your other thread.
Barclays have an in house team called Enact who can give the legal advice to the helper for £154. Search Enact springboard pdf

http://forums.moneysavingexpert.com/showpost.php?p=71990471&postcount=9

Mr.Smith01

The independent legal advice is needed by Barclays to show the "helper" is fully aware that the funds will be locked away in the helpful start account for 3 years and cannot be accessed and that the helper wouldn't own any part of the property. Furthermore, if after 3 years there's arrears on the Mortgage Account then the funds will be held on to by Barclays until the account is brought back up to date and remains in the black for at least 12 months.

This legal advice is more for Barclays protection in the possible future eventuality that a "helper" wishes to access the funds within the first 3 years, complains that Barclays are holding on to the funds if there's arrears on the Mortgage Account or if the "helper" tries to lay claim to any part of the property.

I know this because I work for Barclays in the Mortgage department.

busybee100

Hello Mr Smith
If there are two helpers, one from each family, how will Barclays ensure the funds are returned to the correct helper?

minimike2

I'm not sure Mr.Smith should be so openly posting as a representative of his employer without the permission of that employer and MSE......