Barclays has introduced a new initiative called Mortgage Boost, designed to assist home buyers in the UK. This offering allows family or friends to increase the amount that can be borrowed for purchasing a home without requiring them to lend or gift money directly.
According to Barclays' proprietary data, the average age of first-time buyers in the UK rose to nearly 34 last year. This reflects a trend where individuals are delaying their first home purchase due to high property prices and deposit costs. Three-quarters of renters believe that owning a home feels unattainable within their lifetime.
Mortgage Boost aims to address these challenges by enabling family members or friends to join a mortgage application as named parties. Although they won't own the property or appear on the title deeds, their income will help increase the borrower's loan capacity. The supporters will be jointly liable for the mortgage from the start and must undergo full credit checks.
Sian McIntyre, Managing Director of Life Moments at Barclays, commented: “Buying a first home is a hugely important step in life and one that has unfortunately become tougher for many in recent years. We know people feel like they have to make huge compromises in order to save for a large deposit, and that family may want to help but cannot afford to."
Mortgage Boost is available for both first-time buyers and existing homeowners across all Barclays standard residential products. It can also be used for buy-to-let mortgages but cannot be combined with other special schemes such as Family Springboard or Help to Buy Equity.
The initiative comes at a time when many potential buyers face significant affordability issues. Nearly six out of ten renters feel they would need financial assistance from family members to purchase their first home.
Barclays' recent Property Insights report highlights high property prices (40%) and deposit costs (37%) as major barriers to home ownership. Additionally, some individuals are prioritizing saving for deposits over significant life events like marriage or having children.
All applications under Mortgage Boost are subject to financial circumstances and borrowing history evaluations. Further information about this offering can be found on Barclays' website.