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Barclays offers deposit free mortgages for first-time buyers

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Barclays is offering 100 per cent LTV loans after scrapping the need for first-time buyers to have a deposit for its family springboard mortgage product.

Previously the lender asked borrowers to have a 5 per cent deposit with a 10 per cent contribution from a relative or guardian.

But from today it will just ask for the 10 per cent, which is paid back in three years with interest.

The springboard mortgage lets relatives or guardians open an account linked to the mortgage and pay in cash equal to 10 per cent of the final house price.

Barclays is also raising income multiple caps for its family springboard mortgages from 4.4x income to 5.5x for those with an income of more than £50,000.

A Barclays statement says 35 per cent of prospective first-time buyers needed parental help to buy a house.

Barclays mortgages head Raheel Ahmed says: “We want to offer more people a way to get on the property ladder and to walk through the door of their first home earlier than they perhaps thought.

“Buying a first home is a hugely important step in everyone’s life and one that has unfortunately become tougher for many in recent years.

“When Barclays originally launched the family springboard mortgage in 2013 we made the decision to help both homebuyers and the family who wanted to support their children, but couldn’t just give away large sums of money.”

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