Barclays will offer its joint borrower sole proprietor Mortgage Boost range to lift home loan sizes for first-time buyers.
The high street lender explains if a borrower has an income of £37,500 a year and a deposit of £30,000, then the maximum they may be eligible to borrow could be £168,375, which means they could purchase a home worth up to £198,375.
But if another person joins its boost application, the borrowing amount jumps.
If an eligible friend or family member joins, and they also have an income of £37,500 – the loan can rise to £270,000, allowing for the purchase of a home worth up to £300,000.
The high street lender says the finance package, available to new and existing customers, allows family or friends to join a mortgage application as a named party, but they will not own the property or be named on the title deeds.
It adds: “Their income is used to increase the amount that can be borrowed under the mortgage, and they will be jointly and severally liable from the outset, along with the buyer.”
The bank points out that the product comes, “amid an increasingly difficult landscape faced by those looking to buy a property and could be of particular benefit to first-time buyers who face affordability issues, one of the most significant barriers to getting on the property ladder”.
The average age of first-time buyers 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,” according to the bank’s latest Property Insights report released earlier this month.
The survey also identifies the main barriers to homeownership as high prices and the cost of a deposit.
Barclays managing director of life moments Sian McIntyre says: “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.”
