High street banking giant launches ‘innovative’ new mortgage that means first-time buyers can borrow MORE
High street banking giant launches ‘innovative’ new mortgage that means first-time buyers can borrow MORE
Share:
A MAJOR high street bank has launched a new mortgage product to help first time buyers borrow more. Barclays Bank's "mortgage boost" will let both first-time buyers and existing homeowners add another person to their application to increase the amount they can borrow.
![[London, United Kingdom - September 18, 2011: Sign above the entrance to a branch of Barclays Bank in Knightsbridge London.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/000018351831_XXXLargejpg-JS863311518.jpg?strip=all&w=960)
This could help them get on the property ladder with a smaller deposit or move to a larger home. Anyone on the application will be responsible for the mortgage, but the extra name won't need to own the property or be named on the deeds. In an example provided by the bank, someone with an income of £37,500 a year and a deposit of £30,000 could typically borrow £168,375, allowing them to buy a home worth up to £198,375.
But with the mortgage boost, if they added another person with an income of £37,500 a year, they could borrow up to £270,000 - closer to the UK's average house price of £282,000, according to the Office for National Statistics. The product will run alongside Barclays' existing "family springboard mortgage", which lets helpers deposit a lump sum of up to 10% of the loan to help first-time buyers get a mortgage.
The mortgage boost will have a five-year fixed interest rate of 5.52% for a 95% loan-to-value deal or 5.76% at 100% loan-to-value up to a maximum amount of £500,000. Loan to value is the amount a buyer puts down as a deposit versus the amount they borrow as a mortgage.
