Barclays’ new conveyancing scheme to help young homebuyers
Barclays has launched a new mortgage initiative which allows first time buyers or struggling homebuyers to use their parent’s income alongside their own during a mortgage affordability check.
Seemingly going a step beyond a Guarantor Mortgage, which requires a family member to ‘guarantee’ the monthly mortgage repayments, the Helpful Start affordability plan takes both the client and their parent’s earnings into account in an attempt to help younger homebuyers overcome tighter affordability and lending credentials.
Should the application be approved, the parents will appear on the mortgage but will not be co-owners of the property. All parties, however, will be liable for the repayments.
Should the parents be set to retire within the mortgage term, they will have to prove their expected income throughout retirement.
The scheme has been well received by many in the industry, even so far as being described as “one of the most positive ideas seen for some time”.
The high street lender, which is part of the current Government NewBuy scheme, has also confirmed it is working on another product which would allow parents to use their savings as security in order to help their children benefit from lower mortgage rates.
The Help Start scheme is available on all of Barclays’ mortgage range including its NewBuy product.
Content correct at time of publication