100% Mortgages are back

Barclays launches 100% mortgage but with strings attached

Barclays is the latest lending to launch a 100% mortgages but with a major addition, they need a guarantor which for first time buyers will normally be he bank of mum and dad.

Brokers say that the return of a mainstream lender is notable. “The small building societies and challenger banks have been quite good in offering them for certain people, but to have a big lender coming in is a game-changer,” says Andrew Montlake of mortgage broker Coreco. “We’re seeing more first-time buyers struggling to even raise a 5% deposit without help. This will prompt them to look at whether they can get on the property ladder after all.”

Six lenders offer 100% loans, according to Moneyfacts. It lists these deals:

Aldemore – 5.48% fixed for two years or 5.68% fixed for three years, both with £299 booking fee and £999 completion fee; guarantor needed

Barclays (under Woolwich brand) – 2.99% fixed to 30 June 2019, fee-free; guarantor needed

Bath building society – 3.89% fixed for three years or 3.69% discounted variable rate for three years, both with a 0.4% arrangement fee; guarantor needed

Kent Reliance – 4.99% fixed for two years with £499 arrangement fee; for shared ownership properties

Tipton & Coseley building society – 3.19% discounted variable rate for term, fee-free; guarantor needed

Vernon building society – 3.40% discounted variable rate for four years, £199 arrangement fee; guarantor needed

Written by: Houseladder