Barclays to Join U.K. Help-to-Buy Mortgage Financing ProgramHoward Mustoe
Barclays Plc, the U.K.’s second-largest bank by assets, is to offer mortgages under the Help-to-Buy program, making it the last of Britain’s four largest lenders to sign up to the government plan.
Barclays, which joins banks including HSBC Holdings Plc, Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc, announced the decision in a posting on its Twitter account today. Officials at the London-based company confirmed the plan, without providing further details.
The move means providers of more than 70 percent of U.K. mortgages are now part of Help to Buy, which allows people to acquire a home costing as much as 600,000 pounds ($957,000) with a deposit of as little as 5 percent, the Treasury said. Under the second phase of the program, the government guarantees as much as 15 percent of the purchase price in return for a fee from the lender.
The program is “good for young people who currently can’t get on the housing ladder,” Chancellor George Osborne said on his Twitter account today.
-- Editor: Jon Menon