Barclays launch new mortgage affordability scheme

Barclays has launched a new mortgage scheme that allows parents to use their income to help their children with mortgage affordability. The Family Affordability Plan allows parents to help their children get on or move up the property ladder without being on the property deeds.  Both incomes are used to calculate the amount the bank will lend and the scheme is available across all of the Barclays mortgage range. Some banks have reduced the availability of their guarantor mortgages making it harder for parents to help their children. Northern Rock's lending criteria is particularly tough as it requires any guarantor to have sufficient income to be able to afford the mortgage repayments on their own. Andy Gray, head of mortgages at Barclays is quoted saying: â€œBarclays' Family Affordability Plan allows parent and child to pool resources and secure a larger loan, thereby helping generate much greater wealth and security for the child stepping on or up the property ladder. "With our plan, the parents are a legal party on the mortgage because their affordability has been taken into consideration. If the borrower defaults, the borrower would be liable, as would the parents because they're a legal party to the mortgage.” June 22, 2012