Barclays launches first no-deposit mortgage since credit crisis

Barclays: case study video promoting Family Springboard Mortgage
Barclays: case study video promoting Family Springboard Mortgage

Barclays has become the first high street bank since the the financial crash of 2007-2009 to offer a 100% loan-to-value mortgage product.

It is not putting big money behind marketing the Family Springboard Mortgage, with no plans for TV ads, but it has allocated budget to online video.

While it is some time since 95% LTV mortgages started being offered again in the wake of the credit crisis, the Barclays product made headlines today as the media recalled the days of Northern Rock’s infamous 125% ‘Together’ mortgage.

Instead of a deposit, Barclays still requires a ‘family helper’ to put a sum equal to 10% of the purchase price of the property it lends on into a Barclays savings account. This money will be locked up for three years, earning interest at the Bank of England base rate plus 1.5%, but offers the bank security if the borrower does not make mortgage repayments.

Martin Bevan, head of marketing strategy for Barclays’ mortgage business, said: "We’re promoting the product online with a case study video of customers who have used [a previous Family Springboard Mortgage product].

"We’ve invested in Facebook ads and YouTube pre-roll ad to get the video in front of a wider audience."

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