{"id":685,"date":"2025-04-09T14:32:31","date_gmt":"2025-04-09T14:32:31","guid":{"rendered":"https:\/\/pharosstory.com\/?p=685"},"modified":"2025-05-02T02:35:09","modified_gmt":"2025-05-02T02:35:09","slug":"barclays-is-offering-mortgages-with-a-0-deposit-check-if-youre-eligible","status":"publish","type":"post","link":"https:\/\/pharosstory.com\/index.php\/2025\/04\/09\/barclays-is-offering-mortgages-with-a-0-deposit-check-if-youre-eligible\/","title":{"rendered":"Barclays is offering mortgages with a \u00a30 deposit \u2014 check if you\u2019re eligible"},"content":{"rendered":"
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The high street bank previously required a minimum deposit of 5% (Picture: Getty Images)<\/figcaption><\/figure>\n

A major high street<\/a> bank has launched a new \u00a30 deposit mortgage<\/a> for Right to Buy home loans.<\/p>\n

Barclays<\/a> has scrapped its deposit requirement for people buying their council or housing association homes under the government\u2019s Right to Buy (RTB) scheme.<\/p>\n

Until now, the bank required at least a 5% deposit for RTB mortgages. But under the new changes, eligible buyers no longer need to put down any money up front. <\/p>\n

Right to Buy<\/a> (RTB) is a government scheme that allows those living in council houses or some housing association properties to buy their homes at a heavily discounted rate<\/a>, based on how long they\u2019ve lived there.<\/p>\n

For example, someone who\u2019s been a public sector tenant for three to five years can get a 35% discount, and the discount gets bigger the longer you\u2019ve lived there. <\/p>\n

How does the Barclays new zero deposit mortgage work?<\/h2>\n

Barclays will now use the RTB discount in place of a direct deposit. This enables eligible borrowers to access lower loan-to-value (LTV) mortgage rates, which typically come with better deals and lower interest rates. This could make repayments cheaper and reduce the overall cost of borrowing. <\/p>\n

For example, a tenant purchasing their home with a 40% RTB discount would be treated as having made a 40% deposit, therefore qualifying them for 60% LTV rates, meaning the mortgage is based on 60% of the home’s value.<\/p>\n

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Barclays will use the RTB discount in place of a direct deposit (Picture: Getty Images)<\/figcaption><\/figure>\n

Barclays will lend up to 100% of the discounted purchase price \u2013 meaning buyers don\u2019t have to pay anything upfront \u2013 as long as the total loan amount doesn\u2019t go over 90% of the property\u2019s full market value.<\/p>\n

For example, if a home is worth \u00a3200,000 and the buyer gets a \u00a380,000 RTB discount (making the discounted price \u00a3120,000), Barclays can lend the full \u00a3120,000 because it’s less than 90% of the property’s full market value (\u00a3180,000).<\/p>\n

Deposits are still required for loan amounts on \u2018high-value properties\u2019 – above \u00a3640,000 for houses, and \u00a3310,000 for flats. <\/p>\n

In this case, Barclays can lend up to 85% of the discounted price as long as this does not exceed 80% of the open market valuation.<\/p>\n

Who is eligible for a Barclays zero deposit mortgage?<\/h2>\n

The mortgage is available for those who can buy their homes under the Right to Buy scheme. <\/p>\n

According to statistics from London Councils<\/a>, around 300,000 council homes have been sold off through Right To Buy since the policy was first introduced in 1980 under Conservative Prime Minister Margaret Thatcher<\/a>.<\/p>\n

In 2023, meanwhile, London boroughs had 301,000 households on their waiting lists.<\/p>\n

According to the UK Government website, you can apply to buy your council home if:<\/p>\n