The high street lender will offer Mortgage Boost to new and existing customers, allowing friends or family to up the amount that can be borrowed without having to lend or gift money directly.
The lender said the Mortgage Boost proposition was being offered “amidst an increasingly difficult landscape” for buyers and could be particularly helpful for first-time buyers.
The deal, which can be used across all Barclays standard residential products, works by allowing family or friends to join a mortgage application as a named party, but they won’t own the property or be on the title deeds.
Their income is used to increase the amount that can be borrowed, and boosters will undergo full credit checks, with the mortgage showing on their credit report.
For example, a borrower with an income of £37,500 per year and a deposit of £30,000 could get a maximum of £168,375, meaning they could buy a property worth £198,375.
With Mortgage Boost, for someone with a yearly income of £37,500, the maximum borrowing amount would stand at £270,000, meaning they could buy a property worth around £300,000.
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Boosters supporting an application will need to secure independent legal advice to ensure they understand the potential impact on their own finances, credit history and ability to borrow.
Mortgage Boost cannot be used on other special products or schemes offered by Barclays, such as Family Springboard, Right to Buy, First Home Fund, Help to Buy Equity or Mortgage Guarantee Scheme.
Sian McIntyre, managing director of life moments at Barclays, said: “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.
“Mortgage Boost can help answer these challenges, supporting people to buy their first home earlier and without giving up on their other dreams.”
Barclays’ proprietary data shows that the average age of a first-time buyer stood at 34 in 2024, a rise from 31 in 2022.
The latest Property Insights report from the bank reveals that around 40% said high property prices were a barrier to buying, with 37% pointing to the cost of a deposit.
The report found that almost one in five would delay getting married or decide not to get married and 19% said they would delay having or decide not to have children to save more for a deposit.
Around three-quarters of renters felt that buying a property was not within reach in their lifetime and 57% said they would find it impossible to buy a house without financial help from family.
