UK
Ireland
Scotland
London
Construction News
12/01/2011
Parents Get Loans For Barratt Home Deposit
Parents looking to put down a deposit to help their children buy a new home from Barratt will now be able to apply for an unsecured personal loan of up to £50,000 from Hitachi Capital (UK) PLC, it was announced today.
The tie-up between the UK financial services arm of the multi-national Japanese conglomerate and Britain's biggest housebuilder means that for the first time parents can borrow the money to help their children onto the property ladder without either having to re-mortgage or put a second charge on their own homes.
The product is the only one of its kind currently on the market and is specifically designed to address current mortgage restrictions. Significant numbers of creditworthy first-time buyers are largely dependent on parental support because they do not have the 20 or 25 per cent deposit which lenders now require.
But many parents are often reluctant to fund a deposit if any loan has to be secured against the principal family property.
Under the Hitachi Capital loan scheme, the typical buyer will only need to raise a deposit of five per cent. An 80 per cent mortgage is available from a number of High St lenders. And the remaining 15 per cent of the purchase price can be met through an unsecured loan from Hitachi Capital (UK) to the buyer's parents or legal guardian.
Hitachi Capital (UK) is offering unsecured loans of up to £50,000 for a period of 12 years at a fixed rate of 5.4 per cent. There are no early repayment charges and unlimited overpayments are allowed at any time during the agreement without penalty.
"We are genuinely excited about this tie-up with Hitachi Capital because it gives parents a low-risk way to reduce the size of the deposit which their children have to raise in order to buy a home of their own," said Mark Clare, Chief Executive of Barratt Developments.
"This product is ideal for parents who have sufficient income to service a loan but no available capital. Or people who have capital which is tied-up and which they do not want to access in the short-term."
"We know that there is enormous demand for home ownership amongst people under the age of 40 who are currently renting and this product will make it easier for them to take that all-important first step on the ladder."
(CD)
The tie-up between the UK financial services arm of the multi-national Japanese conglomerate and Britain's biggest housebuilder means that for the first time parents can borrow the money to help their children onto the property ladder without either having to re-mortgage or put a second charge on their own homes.
The product is the only one of its kind currently on the market and is specifically designed to address current mortgage restrictions. Significant numbers of creditworthy first-time buyers are largely dependent on parental support because they do not have the 20 or 25 per cent deposit which lenders now require.
-- Advertisement --
But many parents are often reluctant to fund a deposit if any loan has to be secured against the principal family property.
Under the Hitachi Capital loan scheme, the typical buyer will only need to raise a deposit of five per cent. An 80 per cent mortgage is available from a number of High St lenders. And the remaining 15 per cent of the purchase price can be met through an unsecured loan from Hitachi Capital (UK) to the buyer's parents or legal guardian.
Hitachi Capital (UK) is offering unsecured loans of up to £50,000 for a period of 12 years at a fixed rate of 5.4 per cent. There are no early repayment charges and unlimited overpayments are allowed at any time during the agreement without penalty.
"We are genuinely excited about this tie-up with Hitachi Capital because it gives parents a low-risk way to reduce the size of the deposit which their children have to raise in order to buy a home of their own," said Mark Clare, Chief Executive of Barratt Developments.
"This product is ideal for parents who have sufficient income to service a loan but no available capital. Or people who have capital which is tied-up and which they do not want to access in the short-term."
"We know that there is enormous demand for home ownership amongst people under the age of 40 who are currently renting and this product will make it easier for them to take that all-important first step on the ladder."
(CD)
Latest Construction News
05/02/2025
Stockport Mayoral Development Corporation (MDC) and ECF, a joint venture between Homes England, Legal & General, and Muse, have selected Vinci as the preferred contractor for Phase 1 of Stockport 8, a £350 million residential development west of Stockport town centre.
The decision follows a competi
05/02/2025
Vistry Group has finalised contracts for a significant housing development in Hinckley, Leicestershire, securing outline planning permission to deliver 475 new homes in the area.
The development, located east of Stoke Road and north of Normandy Way in the town's northern region, has a projected val
05/02/2025
Wilten Construction has been awarded a second Design and Build contract at Gateway 14 by client Gateway 14 Ltd and Jaynic.
The project involves the development of a state-of-the-art, three-storey Skills and Innovation Centre spanning 35,000 sq ft in the heart of Gateway 14. Designed to achieve BREE
05/02/2025
Knowsley Council has approved a major housing development in Kirkby, giving the green light to 800 new energy-efficient homes in the town's centre.
The decision also secures £7.7 million in Section 106 contributions from developer Barratt David Wilson Homes, further boosting local investment.
The
05/02/2025
Keepmoat Homes has announced plans to invest over £50 million in three new housing developments across Calderdale, aiming to deliver more than 200 new homes.
The developments, undertaken in partnership with Calderdale Council, form part of the North Halifax Transformation Programme, a local authori
05/02/2025
Essential renewal work at Skerne Road level crossing in Driffield has been completed. Over a six-day period, engineers replaced decades-old equipment, installing a state-of-the-art operating system, replacing the level crossing deck, and resurfacing the road.
The newly installed operating system is
05/02/2025
Construction firm GRAHAM is currently carrying out essential restoration work at the National Railway Museum in York, replacing the Grade II listed roof structure at Station Hall.
Originally built between 1875 and 1877 as a goods station, Station Hall now houses the museum’s six royal carriages.
05/02/2025
Mezzanine floors are commonly associated with additional storage or expanded floor space, but did you know they can also have a profound impact on employee productivity and morale? At Doity Engineering, we specialise in designing and installing mezzanine floors for
05/02/2025
Construction work is commencing on a new solar array at Weeton Barracks in Lancashire that will generate over one third of the site’s energy needs.
The work has been funded under the British Army’s Project Prometheus, a scheme that is increasing renewable energy across the army estate through inst
05/02/2025
The regeneration of Hartlepool's waterfront has reached a significant milestone with a £631,000 grant from The National Lottery Heritage Fund.
The funding will support the development phase of the 'Tides of Change' project, aimed at transforming the visitor experience at the Museum of Hartlepool a
