We were interested in the release of a new mortgage that the Woolwich (Barclays Bank’s mortgage provider) have just launched. It’s called the Family Springboard Mortgage and as the blurb about the product states, it aims to ‘help the home buyer get on or move up the property ladder by allowing parents or other family members to provide financial support.’ (1)
It’s an interesting one. Unlike other recent mortgage products that involve a financial contribution and associated risk from other parties, this one sets more of a limit on the risk that the other parties are exposed to.
This is how it works: it’s a 95% Loan to Value (LTV) mortgage, so the buyer needs to find a 5% deposit. Alongside this, the buyer’s family or helpers are required to place 10% of the property purchase price in a Helpful Start savings account. Provided mortgage payments are kept up for 3 years, this savings account is then closed and the funds in it are released, along with interest, back to the family or helpers.
Woolwich also state that if the helper has an offset mortgage, then the funds in the Helpful Start account can also be used to offset the interest payments on that mortgage.
We have all the details about this new product, along with details of mortgage products across the market, so for more information, do get in touch with us.
For a free, no obligation discussion about your mortgage, call Ronan Marrion on 0800 0112825, e-mail firstname.lastname@example.org or take a look at our website www.wwfp.net.
Your property may be at risk if you do not keep up repayments on a mortgage or any other loan secured on it.
1. Woolwich pdf