deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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Quite an interesting concept and keeps your families/investors money protected, rather than paying it back every month etc. I wonder if the release of the deposit + interest is relative to the equity in the property.
http://www.barclays.co.uk/Mortgages/FamilySpringboardMortgage/P1242627640100
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Ben G
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Registered: 12th Jan 07
Location: Essex
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Apart from the high (im guessing) interest rate, it does look a decent deal if your family have a good amount of cash saved up.
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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Shame my sister rinsed Grandma for her house deposit 
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Daniel_Corsa
Premium Member
Registered: 21st Apr 04
Location: Wigton, Cumbria
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Save as much as possible for deposit, take longer but will be cheaper!
We got about £21k in 18months that was me also selling car and buying a dull diesel golf.
Good scheme and we looked but 95% just is too much IMO.
April '06' Corsasport Feature Car  | Aug '08' Total Vauxhall Feature Car | Spring '09' Fast Car Feature Car
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AndyKent
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Registered: 3rd Sep 05
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£6750 really isn't THAT difficult to save up, even twice that should be totally achieveable.
If you're looking at £500/month mortgage saving that alone for 18 months is £9k. £250 each for a couple, thats nothing.
Double it to 500 each and you can do it alone in 18 months without assistance.
I still don't think only working towards only a 5% ownership is a good start.
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Colin
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Registered: 4th Apr 02
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So what happens in 36 months time when the economy is still fucked the house is still with the same or less of purchase price and no one will give you a remortgage???
Id pass on any house buying scheme personally and just save up as long as it takes.
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John
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Registered: 30th Jun 03
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I agree with that Colin, 3 years down the line you're stuck unless wages have went up by quite a bit.
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ed
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Registered: 10th Sep 03
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Banks aren't the good guys, they're not there to help you and they're all in a bit of a mess. They're just there to rinse as much money out of you as possible, and schemes like this are a way they can do it.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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Sounds lovely, like with all these fancy things.
I'd need to see figures but my first thought is that you'd actually end up paying less to borrow if you just fired off the helper concept and clubbed together one single large deposit.
Interest rate that the helpers earn will be lower than the rate on the mortgage product?
I'm cynical but these types of things all appear to be a smoke and mirrors way of convincing people they're getting a good deal, when in fact you're getting a 95% LTV product with a poor rate, your helpers don't really benefit much, they get a bit of liquidity in the investment but not all that much compared to other types of investment which probably return more.
Sure they could realise their investments when you re-mortgaged in 2/3/4 year's time and bridge loaned the money to them somehow. There would be a way of getting the money out even if it was lumped in together in the first place.
The main thing with mortgages and the main way to pay less for a house is to accrue less interest, and the only way to do that is to borrow less. If that means borrowing from other places so your mortgage doesn't last as long, that's the mathematical way to save money.
These schemes to get you on the ladder I often wonder at what cost.
[Edited on 24-01-2013 by Ian]
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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Yeah, I wasn't necessarily advocating or looking at these but it's an option and thought people might like to know.
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