Family Springboard Mortgage and similar

johnsmclean

Hi,
looking for some advice. I think I understand how the mortgage works (10% deposit locked away for 5 years, need to have an independent lawyer). But does it allow the borrowers (family member giving help to) borrow more ? I guess can get access to 95% mortgage so that helps?  As opposed to 85% of LTV. 
Is the Family Springboard Mortgage a better approach than giving them the 10% into their bank account ?
Thanks in advance.

bradders1983

https://www.barclays.co.uk/mortgages/family-springboard-mortgage/?campaign=Google-PPC-Mortgages&chnnl=PSB&gclid=Cj0KCQjwy8f6BRC7ARIsAPIXOjjtIH0aaZreaQgk921ADTfuJzK6XX_Lw9vrvWJnpH9F2QQjqEOse2caAimaEALw_wcB&gclsrc=aw.ds

There is an example on here. If I am reading it right,  If the house is £200k, a family member needs to give Barclays £20k and then the mortgage is "up to 100%, so in theory you dont have to pay any extra in as deposit yourself. Obviously you then have a £200k mortgage to pay rather than a £180k, so payments will reflect this.

The interest rates on offer arent great though, I am currently going through a Barclays remotgage and the interest rate starts with a 1, dont have the paperwork here to check.

I would also say that Barclays will check the provenance of the "family deposit", so if you are thinking of giving a family member (as an example) £20k to then give to Barclays, I suspect they will find out.