11th Oct 2013 10:55
LONDON (Alliance News) - Barclays PLC Friday confirmed it will sign up to the UK government's Help to Buy mortgage guarantee scheme.
Barclays joins the UK's other major listed mortgage lenders, Royal Bank of Scotland Group PLC, Lloyds Banking Group and HSBC Holdings PLC, in signing up to the scheme.
"We are pleased to confirm that Barclays will participate in the Help to Buy mortgage guarantee scheme," a Barclays spokesman said in a statement.
Barclays didn't provide details of any specific mortgage products that will be offered under the scheme, nor when those products will be released.
Help to Buy is designed to help people buy a home with a smaller deposits than normally required.
Under the scheme, the UK government guarantees 15% of the value of loans up to GBP600,000 in return for a fee charged to the mortgage provider. Borrowers are required to provide a 5% deposit.
Applicants to the scheme will face a series of checks in order to make sure they can afford to pay their mortgages.
Barclays shares were Friday quoted at 278.45 pence, up 3.95 pence, or 1.4%.
By Samuel Agini; [email protected]; @samuelagini
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