Barclays’ Mortgage Boost Aims to Ease First-Time Buyers’ Path to Home Ownership

Barclays’ Mortgage Boost Aims to Ease First-Time Buyers’ Path to Home Ownership

(IN BRIEF) Barclays has introduced Mortgage Boost, an initiative aimed at helping first-time buyers borrow more without the need for a larger deposit. The scheme allows family or friends to increase the borrowing capacity without directly lending money, offering a solution to the growing affordability challenges in the UK property market. This comes as the average age of first-time buyers in the UK rises, with many renters feeling home ownership is out of reach. Mortgage Boost enables participants to increase their loan amount by adding another person’s income to the mortgage application, making it easier to purchase a home. Barclays aims to support buyers in achieving home ownership sooner while managing the financial strain of saving for a deposit. The initiative requires all parties involved to undergo full credit checks and seek independent legal advice.

(PRESS RELEASE) LONDON, 29-Jan-2025 — /EuropaWire/ — Barclays has unveiled a new initiative, Mortgage Boost, designed to help first-time buyers borrow more towards their home purchase without the need for a larger deposit. The offering is a timely solution, particularly given the increasing challenges prospective homeowners face.

Recent data from Barclays reveals that the average age of first-time buyers in the UK surged to nearly 34 years old in 2024, a marked increase from just over 31 years old two years prior. This trend highlights the growing financial hurdles delaying home ownership.

Barclays’ proprietary research also sheds light on the significant barriers renters face in achieving home ownership. The rising property prices (40%) and hefty deposit costs (37%) are often cited as major obstacles. As a result, three in four renters believe that home ownership is out of their reach, and nearly 60% feel that they would be unable to buy a home without financial assistance from a family member.

Mortgage Boost addresses these challenges by allowing family or friends to help increase the borrowing potential for first-time buyers, without having to directly lend or gift funds. This solution is available to both new and existing customers, providing a way to overcome affordability issues that prevent many from getting onto the property ladder.

For instance, under normal circumstances, a borrower earning £37,500 a year with a £30,000 deposit may be eligible to borrow up to £168,375, allowing for the purchase of a property priced at £198,375. However, with the addition of a family member, such as a parent with a similar income, the borrower could secure a total loan of £270,000, enabling the purchase of a home valued at £300,000.

Barclays’ latest Property Insights report highlights that many potential buyers are making significant sacrifices, such as delaying marriage (17%) or the decision to have children (9%), in order to save for a deposit. Mortgage Boost aims to alleviate this strain by enabling individuals to buy their homes sooner, with the support of family or friends.

Sian McIntyre, Managing Director of Life Moments at Barclays, commented on the initiative: “The journey to home ownership is increasingly difficult for many, especially first-time buyers. Mortgage Boost offers a solution by enabling people to buy sooner without having to choose between their financial goals and their dreams.”

How Mortgage Boost Works

Mortgage Boost allows family or friends to join the mortgage application, thereby boosting the total amount that can be borrowed, without being named on the title deeds. This increased borrowing capacity is based on the additional income of the ‘booster(s)’ who, while not owning the property, will be equally responsible for the mortgage. This means that boosters will be subject to full credit checks, and the mortgage will appear on their credit report.

To ensure that all parties understand the potential impact of this arrangement on their financial situation, boosters are required to seek Independent Legal Advice.

Mortgage Boost is available to both first-time buyers and existing homeowners, and can be applied to any Barclays standard residential mortgage product. This includes new purchases, remortgages, and buy-to-let mortgages. However, it cannot be used in conjunction with other special schemes, such as Family Springboard or Help to Buy.

It is important to note that all mortgages are subject to application approval, financial assessment, and borrowing history. Borrowers must keep up with repayments, or the property may be repossessed.

For more information about Mortgage Boost, visit the Barclays website at www.barclays.co.uk/mortgages/mortgage-boost/.

To explore other first-time buyer mortgage options, visit www.barclays.co.uk/mortgages/first-time-buyers/.

Notes to Editors

Mortgage Boost operates on the same criteria as standard residential mortgage applications, with all parties—buyers and boosters—jointly responsible for payments. Any agreement regarding the division of payments must be made independently. Buyers using Mortgage Boost for their first home will not be impacted by stamp duty changes, as boosters are not listed on the title deeds.

Consumer Research Insights

Barclays’ data on first-time buyer demographics is based on anonymized mortgage customer data, which shows a consistent rise in the average age of first-time buyers:

• 2022: 31.08
• 2023: 33.58
• 2024: 33.75

The consumer research referenced in this release was conducted by Opinium Research between 13th and 18th December 2024. A representative sample of 2,000 UK consumers participated, spanning various age groups, genders, regions, and income brackets.

About Barclays 

Our vision is to be the UK-centred leader in global finance.  We are a diversified bank with comprehensive UK consumer, corporate and wealth and private banking franchises, a leading investment bank and a strong, specialist US consumer bank.  Through these five divisions, we are working together for a better financial future for our customers, clients and communities.

For further information about Barclays, please visit our website home.barclays 

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SOURCE: Barclays