Financial Analyst specializing in UK Mortgage Products
Use this calculator to estimate the monthly repayments, total interest, and the required Helper Deposit for a mortgage taken out under the specific terms of the Barclays Family Springboard Mortgage scheme.
Barclays Family Springboard Mortgage Calculator
Estimated Monthly Repayment:
Barclays Family Springboard Mortgage Calculator Formula:
The core calculation for the Family Springboard Mortgage monthly repayment uses the standard amortizing loan formula (P&I):
$$ M = P \left[ \frac{i(1+i)^n}{(1+i)^n - 1} \right] $$
Where:
M = Monthly Repayment
P = Principal Loan Amount
i = Monthly Interest Rate (Annual Rate / 1200)
n = Total Number of Payments (Term in Years × 12)
Formula Source: Investopedia (Amortization), MoneySavingExpert (Springboard Product Details)
Variables:
A breakdown of the variables used in this calculation module:
- Property Value: The total price of the property being purchased. This is key for determining the Helper Deposit requirement (10% of this value).
- Desired Loan Amount: The actual principal amount you are borrowing from Barclays.
- Fixed Interest Rate: The annual interest rate applied to the loan, usually fixed for an initial period (e.g., 2 or 5 years).
- Mortgage Term (Years): The total duration over which you will repay the loan, expressed in years.
What is Barclays Family Springboard Mortgage?
The Barclays Family Springboard Mortgage is a unique product designed to help first-time buyers or home movers purchase a property without needing a large deposit themselves. Instead of the borrower providing a deposit, a family member (the Helper) places an equivalent of 10% of the property’s purchase price into a dedicated Barclays savings account, which is linked to the mortgage.
This 10% Helper Deposit acts as security for the bank. The borrower effectively gets a 95% LTV mortgage but without paying a 5% deposit. The Helper’s money is held in the account for typically five years and earns interest. Crucially, as long as the borrower makes all their mortgage payments on time, the Helper gets their money back, plus interest, after the five-year security period. This structure makes it a popular choice for families looking to offer financial support without gifting money outright.
How to Calculate Barclays Family Springboard Mortgage (Example):
- Establish the Inputs: Assume a Loan Principal (P) of £200,000, an Annual Rate (R) of 5.0%, and a Term (T) of 25 years. Property Value is £220,000.
- Calculate Helper Deposit: The required Helper Deposit is 10% of the Property Value: £220,000 * 0.10 = £22,000.
- Determine Monthly Interest Rate (i): Divide the annual rate by 1200: $i = 5.0 / 1200 = 0.0041667$.
- Determine Total Payments (n): Multiply the term in years by 12: $n = 25 \times 12 = 300$.
- Apply the Amortization Formula: Substitute the values into the formula to calculate the Monthly Repayment (M). In this example, M would be approximately £1,169.10.
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Frequently Asked Questions (FAQ):
Is the Helper Deposit returned?
Yes. After the initial five-year period, and assuming all mortgage payments have been made on time, the Helper’s 10% deposit, plus any interest earned, is returned in full.
What is the maximum Loan-to-Value (LTV)?
The Family Springboard Mortgage allows borrowers to get up to 95% LTV without paying their own deposit, meaning they only need a 5% deposit equivalent secured by a family member (Helper).
What is the maximum term for this mortgage?
Typically, the maximum mortgage term is 35 years, subject to the borrower’s age and lender criteria.
Can I use the Springboard Mortgage if I’m not a first-time buyer?
Yes, while often used by first-time buyers, the Barclays Family Springboard Mortgage is also available to existing homeowners who are moving house.