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Family springboard mortgage
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Does this sort of mortgage arrangement still work if the buyer has a deposit but it's not big enough so family will top it up?0
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If you read the Barclays website it talks about 100% and 95% springboard mortgages with a slightly higher rate 2.99% for the 100% Mortgage and 2.79% for the 95% Mortgage fixed for 3 years.
The family member has to take legal advice and understand that they are putting 10% of the purchase price into a savings account which pays 1.75% for a full 3 years.
The money is at risk if you do not pay the mortgage every month0 -
Hi Gary,
How did you get on? did you manage to complete? I am in the same boat as you were, and thinking about use the Springboard Mortgage with help from my Dad, he thinks the solicitors is an unnecessary expense but I believe it is a requirement to setup the helpful start account. Anymore info or potential problems you encountered would be greatly appreciated?
Thanks
Reidy0 -
Last activity was 27/01/2017 so don't hold your breath!I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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Just thought I would pop back on and give an update.
We are now homeowners thanks to my sister putting down the deposit.
It was actually quite straightforward in the end (as straightforward as buying a house can be). My sister used enact (through Barclay's) as her legal bod and that went smoothly.
Our solicitor had never heard of this mortgage but the bank sent them all of the information so caused us no complications. it cost us £50 more in solicitors fees but that's the only added extra we have had to pay. My sister had to pay £150 to enact but we have said that we will pay them fees, as she is doing us a massive favour.
My sister will get her money back in 3 years, plus 3% Interest. This is as long as we don't default on the mortgage.
I would definitely recommend using this mortgage. I was expecting all sorts of complications but in the grand scheme of things it all went through ok.
My only advice is keep on at the bank and at the solicitors as they don't tend to rush.0
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