Family Springboard Mortgage is a special type of lending that allows you to purchase your own first home.
In order to buy a home for a young family, you do not need to make a borrower deposit, you just need to find relatives who want to help you in buying a home and are ready to deposit 10% of the cost of housing as collateral.
In this case, your relatives will receive their money back as soon as you pay the cost of debt.
Together with the amount of the deposit, they will also receive an interest earned during this time.
Thus, your family contributes not a security deposit, but a deposit that will save their money and earn.
Family Springboard Mortgage is an opportunity to get a helping hand from the family and buy your own home.
About Springboard Mortgage
Helping of your family lets you to get your own first home and save on paying extra interest on buying a home.
The members of your family are jointly liable for repaying the springboard loan, but are not responsible for paying you the rest of the loan for the house.
The money from their deposit will be withdrawn only if you do not make payments on the springboard loan.
Once you make the last payment for the Springboard mortgage, your family will be removed from responsibility and they can withdraw their deposit and interest.
The mortgage rates usually are 1.79-2.99% and depend on terms and type of the loan.
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What you need to know
You and your family members who are helpers must provide all income and credit information, as well as comply with the general standard requirements for obtaining a mortgage loan.
This is necessary due to the fact that you are both responsible for repaying the Springboard Mortgage.
If you make a deposit, it must be at least 20% of the value of the house (this amount also includes the main Sprinboard loan).
You must guarantee solvency and the ability to pay both a springboard loan and a mortgage.
You must live in the house that you buy.
The responsibility for repaying the Springboard loan is borne by you and your family together.
Given all of the above features, we recommend you to get legal advice before signing such a loan.
This type of lending has recently gained considerable popularity.
More and more loan companies offer their clients exactly such a loan for the purchase of the first housing.
The Barclays Springboard Mortgage has gained popularity, as they offer lending to the first housing without a deposit and provides 1.5% interest to your family.
Mortgage rate secured here is 2.99% for three years.
We hope that the Barclays Family Springboard Review presented in this article has helped you to understand more about this type of lending and make the right decision to purchase your first home.