Barclays has announced changes to its mortgage offering for individuals looking to purchase homes through the Right to Buy (RTB) scheme. The bank has eliminated the requirement for a deposit from these borrowers, leveraging the RTB discount as a substitute for a direct deposit. Those benefitting from this scheme will also access lower Loan-to-Value (LTV) mortgage rates. An example is a 40% discount on a home, treated as a deposit, allowing access to 60% LTV rates.
In its effort to maintain responsible lending practices, Barclays has capped lending at 90% of the property's full market value and excluded high-value properties from the zero-deposit option.
Lee Chiswell, Head of Mortgages at Barclays, stated, “The Right to Buy scheme has long been a crucial route to home ownership for council and housing association tenants, yet we know that saving for a deposit remains a key obstacle. By lending for the full value of the property, we’re removing the need for buyers to have any deposit at all, helping many completely sidestep their largest barrier to home ownership.”
The mortgage changes align with Barclays' broader initiatives to enhance affordability for both first-time buyers and current homeowners. This includes the Mortgage Boost program, letting family members or friends increase the borrowing capacity without direct financial gifts or loans. Additionally, the bank has raised the maximum loan amounts for high LTV mortgages to £640,000 for houses and £310,000 for flats, a move intended to assist buyers in acquiring higher-priced homes with smaller deposits.
For individuals interested in these mortgage offerings, more details can be found on Barclays' website.
Separately, for Right to Buy loans, Barclays can lend up to the full discounted price, as long as it does not exceed 90% of the market value. For high-value properties, the bank will lend up to 85% of the discounted price if it remains within 80% of the market valuation.
Barclays' decision reflects its broader strategy to support the UK housing market by improving access for buyers experiencing financial challenges. The bank's vision is to lead in global finance with a customer-oriented approach across its diverse financial services.
Visit the Barclays website for further information on their financial products.