From 6 May, first-time buyers obtaining the fee-free Barclays Family Springboard mortgage will see a stepped reduction in the interest rate they pay over a three year period, with a lifetime follow on rate of 2.49% + BBBR which represents a 100 bps reduction on the existing Family Springboard follow on rate.
Barclays Family Springboard Stepped Fixed Rate Mortgage is specifically designed to help customers to adjust to their new financial responsibilities as a homeowner with a reducing mortgage payment during the first three years of owning the property. This offers customers a £636 saving over the initial three year term.
The Family Springboard mortgage allows ‘Helpers’ to use their savings to help homebuyers secure a mortgage by holding 10% of the purchase price in a Helpful Start account. This enables the homebuyers to apply for a 95% LTV mortgage. After three years the money is released back to the ‘Helpers’ with BOE + 1.5% interest, providing that the mortgage repayments have been kept up to date.
In addition, Barclays has reduced the fixed rates on the two, five and 10-year fixed rates across its range, as well as introducing a five-year fixed rate at 1.99%.
Andy Gray, managing director of mortgages for Barclays, said: “Springtime is traditionally a period of increased house buying activity and through our award winning Family Springboard we are pleased to be offering customers lower rates and greater savings when buying their property. We hope this will particularly make managing their finances a little easier for first-time buyers in their first three years, while achieving significant savings at the same time.
“Together with the rate cuts we’re introducing a number of highly competitive two, five and 10 years fixed rates to our mortgage range and our new five-year fixed rate at 1.99% highlights our ongoing commitment to providing homeowners with access to very competitive rates. This rate is only available for a limited period, so customers need to act now to ensure they secure the best deal for them.”