Barclays has launched Mortgage Boost to new and existing customers, a proposition allowing family or friends to increase the amount that can be borrowed towards a home.
Mortgage Boost allows willing parties to ‘boost’ deposits without having to lend or gift money directly, and without the need for a larger deposit.
For example, if a borrower has an income of £37,500 a year and a deposit of £30,000, the maximum they may be eligible to borrow could be £168,375, which means they could purchase a home worth up to £198,375.
However, with Mortgage Boost and another person willing to join the application, the amount that can be borrowed can increase.
If a parent or friend joins the application, and they also have an income of £37,500 – then the client could be able to borrow a total of £270,000, allowing them to purchase a home worth up to £300,000.
According to Barclays’ proprietary data, the average age of a first-time buyer in the UK rose to nearly 34 in 2024, up from just over 31 only two years earlier, as people increasingly have to delay purchasing their first home.
In addition, Barclays’ most recent property insights report identified high prices (40%) and the cost of a deposit (37%) as the main barriers to home ownership.
Sian McIntyre, managing director of life moments at Barclays, said: “Buying a first home is a hugely important step in life and one that has unfortunately become tougher for many in recent years.
“We know people feel like they have to make huge compromises in order to save for a large deposit, and that family may want to help but cannot afford to.
“Mortgage Boost can help answer these challenges, supporting people to buy their first home earlier and without giving up on their other dreams.”
