Barclays launched a new cashback mortgage in February aimed at encouraging first time buyers to get on the property ladder sooner. Borrowers buying a property between £100,000 and £150,000 will receive £1,250, while FTBs purchasing a property valued between £150,000 to £500,000 will receive the maximum £2,500, with consumers able to spend the money on whatever they wish. The rate on the new product is slightly higher than other mortgage deals at 2.69%, and only comes in a five-year fix rate loan at 80% loan-to-value (LTV).
RFi Group data shows that ‘the costs associated with the mortgage (e.g. stamp duty, solicitor fees)’ is one of the major factors that apprehensive future FTBs are concerned about when it comes to applying for their future mortgage, suggesting that Barclays’ new product may help ease such concerns, at least to some extent.
Source: RFi Group UK Mortgage Council Q4 2016