Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner. Facebook Messenger An icon of the facebook messenger app logo. Facebook An icon of a facebook f logo. Facebook Messenger An icon of the Twitter app logo. LinkedIn An icon of the LinkedIn logo. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Email An icon of an mail envelope. Copy link A decentered black square over a white square.

The 100% mortgage has returned but it won’t help all buyers

House-hunting (PA Wire)
House-hunting (PA Wire)

It was once relatively common to be able to arrange a mortgage that covered the entire cost of a home, avoiding the need to save for a deposit.

However, with the credit crunch of 2007, lenders began withdrawing them and it seemed as if they had been consigned to the history books.

But now Barclays has launched the first 100% mortgage from a major provider since the financial crash of 2008. Despite its name though, borrowers will still need to find a lump sum from somewhere.

Matt Sanders, head of money at Gocompare.com, said: “Buyers will still need to find a helper able to stump up 10% of the house purchase price to lock away in a Barclays’ savings account for three years.

“Ultimately, it means this is a new mortgage brought to you by Barclays and the Bank of Mum and Dad.

“For those with parents or benefactors able to part with this amount of money for three years, Barclays’ new mortgage could well be worth considering.

“However, it’s hardly a no-brainer like the Government’s recently launched Help-to-Buy Isa.

“It’s worth remembering the risk is spread across the buyer and the guarantor. If the mortgage payments aren’t met, the guarantor may lose the money held in the savings account.

“Barclays’ product is largely suited to families with moderate to large savings who don’t want to or can’t wait for the benefit of a Help-to-Buy Isa.

“With the market being particularly competitive at the moment, be sure to weigh up your options and get fee-free advice before taking the plunge.”


READ MORE

Bank of Mum and Dad is propping up a quarter of this year’s mortgages

Raw Deal: Overbilling by phone company meant Linda struggled to re-mortgage