It's back! The return of the 100% mortgage

The return of the deposit-free mortgage has prospective first-time buyers excited about a leg up onto the property ladder – let’s take a look at the requirements in order to take full advantage of this new and improved springboard mortgage.

With one of the major banks offering the first 100% mortgage since the financial crisis struck, first time buyers could now be getting a helping hand onto the property ladder.

Barclays are offering a 100% mortgage to both first time buyers and movers. The mortgage is a three year fixed rate deal at 2.99% for those buyers who have no deposit but earn more than £50,000.

The enabler in securing the deal comes from family or friends willing to put down a temporary deposit, the equivalent of 10% of the property’s selling price into a savings account for a period of three years. Following successful repayments by the borrower they will be repaid the deposit plus interest – meaning no savings spent!

The changes to one of the banks existing springboard mortgages has been announced as it celebrates 3 successful years since its launch. By removing the previously required 5% deposit the bank hopes to make the family springboard mortgage available to an increased number of first-time buyers who earn a high salary but have not been able to pull together a deposit.

Surely this is good news for the family as well, enabling parents to give a helping hand to their children onto the property ladder without having to spend large sums of savings.

But will others follow?

The good news continues - as it stands, there are other banks and building societies beginning to offer similar 100% mortgages that include a parental guarantee. It would suggest that slowly but surely more options are emerging for first-time buyers - providing a long awaited chance to make their move.