Barclays Bank in the UK has just started a great new load for first time buyers called the ‘family springboard’ mortgage.
It offers borrowers a 500,000 pound mortgage (approx A$1mill) at 2.99% fixed rate if the parents put down 10% of the purchase price. So long as the borrower makes the repayments the parents get their money back after 3 years plus 2% annual interest.
So asking parents to lend 10% for 3 years and then they get it back is going down much better than “will you give me the money to buy a house?”
Other UK lenders will now look for follow suit and maybe if the Aussie big 4 banks wanted to really help first time buyers this is how they could do it.