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Helping a family member get on the property ladder

 

It’s becoming increasingly challenging to get on the property ladder. This is down to rising house prices outpacing wage growth, increased mortgage interest rates, and the cost of living.

Getting a big enough deposit together is the biggest obstacle facing many first-time buyers today. They sometimes have to turn to family for financial support. But what does that mean, exactly?

Find out what your options are if you’re a family member of a first-time buyer wanting to help someone get on the property ladder. 

What options are there?
 

Family Boost mortgage

If you’ve got any savings, you could use some or all of them to put down 10% of the property purchase price as security instead of a deposit.

  • You'll lock your savings into a fixed-term savings account for three years.
  • Your family member can apply for a mortgage, using your savings as security.
  • This means if the first-time buyer misses any payments, we'll use your savings to catch up.
  • You'll get all of your money back, with interest, after three years if there are no missed mortgage payments.
  • Conditions and exclusions apply.


    Go to Family Boost mortgages

Family remortgage

You may be able to remortgage, or borrow more money against your own property to help boost the buyer's deposit. You'd borrow the amount needed for the deposit against your own property, and gift it to the buyer.

Joint mortgage

This might surprise you. You might be able to apply for a mortgage with a family member, as long as all applicants pass affordability checks.

  • You’ll both be named on the mortgage and be responsible for making the monthly payments. 
  • The first-time buyer might be able to borrow more with a parent named on the mortgage.
  • The joint mortgage might have a shorter term, depending on your age.
  • The first-time buyer might not qualify for stamp duty relief.
  • Conditions and exclusions apply.



    Go to joint mortgages

You could lose your home if you don’t keep up your mortgage repayments

What other options do I have?

There are other things you can do to help a first-time buyer. Most of them involve helping the buyer save for their deposit.
 

Helping the buyer save for a deposit

This is where you use a savings account just for the deposit, and take the money out once you’ve hit your target. You can set this up either online or using the mobile banking app.

Go to Savings

Gifted deposits

Giving someone money for all or part of their deposit is called gifting. If you do this, you need to prove the money is a gift and you won’t ask for it back. You can only do this with a gifted deposit letter to the mortgage provider.

What does a gifted deposit letter need to include?

Before you consider gifting someone a deposit, it’s important to understand how you might be affected by Inheritance Tax.

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Mortgage calculator

View our range of mortgages and see what deposit you’ll need for your new home.

Use the calculator

Buying your first home

Find out everything you'll need to know when buying your first home here.

First time buyers guide

Can we help?

Speak to one of our mortgage and protection advisers.
 

Speak to an adviser

First-time buyer help

Are you getting ready to take your first step on the property ladder?

We're here to offer guidance along each step of your journey, to make it as simple as possible.

First-time buyer help hub

First-time buyer help

Are you getting ready to take your first step on the property ladder?

We're here to offer guidance along each step of your journey, to make it as simple as possible.

First-time buyer help hub