Money digest: today’s need-to-know financial news | 4 May 2016

Yesterday we reported that the ‘bank of mum and dad’ is now the equivalent of a top ten mortgage lender in the UK. Today comes the news that one of Britain’s biggest lenders has launched a new ‘bank of mum and dad‘ deal for people with wealthy parents. The new mortgages from Barclays have reduced the deposit homebuyers need from 5 per cent to 0 per cent of the purchase price, as long as their parents agree to save at least 10 per cent in a special savings account. This marks a return to what some commentators view as the dark days of the 100 per cent mortgage, common before the last housing crash. Russell Quirk, founder and chief executive of online estate agent Emoov notes that lenders such as Northen Rock offered 125 per cent mortgages ahead of the financial crisis, and advises caution. ‘There is a potential issue here. It’s not the 100 per cent mortgage but where this goes next.