The family affordability plan allows parents’ income to be taken into account without them being on the property deeds.
The scheme is available across all of the lender’s mortgage range, including its NewBuy product. However, the scheme is not available on properties in Scotland and Northern Ireland. The plan allows parents and their children to pool their income resources to secure a larger loan.
Barclays told Mortgage Strategy’s sister publication Money Marketing it is also working on another guarantor product, where parents can help their children access lower rates by using any savings they have as security, similar to Lloyds TSB’s lend a hand product.
Barclays head of mortgages Andy Gray (pictured) says: “Many parents have already realised the return from buying their homes and want to give their children this important step towards independence, but they cannot afford to provide them with the deposit to buy their first home or trade up.
“Barclays’ Family Affordability Plan allows parent and child to pool resources and secure a larger loan, thereby helping generate much greater wealth and security for the child stepping on or up the property ladder.”
Stuart Gregory, director at Lentune Mortgage Consultancy, says: “There has been a reduction in the number of guarantor-type products in the market over the past few years, so to have this is very positive.
“It is very good to have the flexibility of having this available across all of its products. I would be surprised if other lenders did not come out with similar features in the future.”