Reeds Rains now has access to a new product, the Barclays Bank Family Springboard Mortgage, which has been created to help first time buyers and current homeowners get onto or move along the property ladder.
Research indicates the Bank of Mum and Dad will support the purchase of £77 billion pounds worth of property during 2016, making the Bank of Mum and Dad the equivalent of a top 10 mortgage lender in the UK.*
The study also found that 57% of Bank of Mum and Dad contributions are gifts, which is an average financial input of £17,500 they are not expected to get back.*
James Storey, area development manager for Reeds Rains estate and lettings agents says: “Asking a family member for financial support with a house purchase can be difficult, especially if the family member is not going to see a return on their money. However, Reeds Rains now has access to a mortgage called the Barclays Bank Family Springboard Mortgage which can help a loved one purchase a property and allows the relative to still earn interest on their savings.
The Family Springboard Mortgage is not only appealing to first time buyers who are looking to get on the property ladder but also current homeowners looking to move up the property ladder, particularly those with little or no equity.
One reason current homeowners are approaching Reeds Rains looking for help with moving house is because they’ve had children and need a larger property, but need short term support from family members or friends to make the move.
With the Family Spring Board Mortgage, a current homeowner can sell their property and use the money released as a deposit towards their next property purchase. They would then borrow the remaining amount needed using The Family Springboard Mortgage.
A ‘helper’ puts 10% of the purchase price into a Helpful Start Account linked to the mortgage. The ‘helper’ must take independent legal advice before the mortgage can complete. The savings will be released with interest after 3 years providing the mortgage repayments have been maintained. The early repayment charge is 3% of the balance repaid for the initial term. Valuation fees and legal costs apply. Terms and conditions apply.
We are encouraging people to visit www.reedsrains.co.uk to find their local Reeds Rains branch and make an appointment with a professional mortgage advisor who can explain the details.”
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
© Reeds Rains. Reeds Rains is a trading name of: Reeds Rains Limited whose registered number is 02568254 and registered office is Ground Floor, Buildmark House, George Cayley Drive, Clifton Moor, York, YO30 4XE. Reeds Rains Limited is an appointed representative of First Complete Limited, which is authorised and regulated by the Financial Conduct Authority (FRN:435779) for mortgage and non-investment insurance advice.
Our initial mortgage consultation is free. We will charge a fee between £349 and £699 on application. The amount we will charge is dependent on the amount of research and administration required.