Wondering what the difference is between the Barclays family springboard mortgage and Halifax family boost mortgage? These mortgage products are very similar in that the both offer first-time buyers the chance to get on the property ladder without a deposit, but with help from family members. In other words, both of these products are guarantor mortgages. They are not 100% mortgages in the old sense of being able to take out a mortgage without a deposit – those mortgage types are no longer available following the financial crisis of 2008.
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With both the Barclays and the Halifax mortgages, a family member or friend would have to keep 10% of the home's final cost in a savings account with the respective bank. However, there are important differences between the two products.
Halifax family boost mortgage
- Number of years a family member will need to keep the deposit amount in a savings account: three years;
- Fixed interest rate period: three years;
- Savings account interest rate: 2.5 per cent gross/AER;
- Helping family members will need to have a Halifax Reward or Ultimate Reward current account, which will come with a monthly fee.
Barclays family springboard mortgage
- EmptNumber of years a family member will need to keep the deposit amount in a savings account: five years;
- Fixed interest rate period: five years;
- Savings account interest rate: 2.25 per cent;
- The Helpful Start account for the guarantor is free of charge, not reserved for existing Barclays account holders.
As you can see, these are similar products, but each has its own pros and cons. While the Halifax offers a slightly better interest rate to guarantors, it also requires a pre-existing account with Halifax that comes with fees. The Barclays offers the savings account for free to anyone, but the interest rate is slightly lower, and the money will need to be kept in the account for a whole two years longer than with the Halifax mortgage.
With both of these products, the buyer will need to be aware of the potential implications of a no-deposit mortgage, particularly the longer overall mortgage term, which means more interest to repay over time.
When taking out a mortgage, always ask the lender whether they will accept overpayments (if, in the future, you are in a position to make them), and whether they'll penalise you for them. Also, you may wish to remortgage when your fixed rate period comes to end – get more advice about how to remortgage in our guide.