U.K. banking giant Barclays is to offer 100 percent mortgages, in a move that echoes the risky lending practices that led to the global financial crisis of 2008.
Announcing the deal on Wednesday, Barclays said deposits would no longer be needed for its Family Springboard mortgage, if borrowers had a "helper contribution" worth 10 percent of the property purchasing price from a relative or guardian.
"With over a third of young people still turning to their family for help with buying a home, we have increased the accessibility of the Barclays Family Springboard Mortgage. We want to offer more people a way to get on the property ladder and to walk through the door of their first home earlier than they perhaps thought," Raheel Ahmed, head of Barclays Mortgages, said in a media release.
The mortgage will come with a three-year fixed interest rate of 2.99 percent if buyers make no deposit.