Family Assisted Mortgages.

A family assisted mortgage is quite simply one in which close family members help each other with home ownership. This could either be by being joint borrowers on a mortgage, or by gifting a deposit.

These mortgages allow relatives to help each other to either get on the property ladder, remain on the property ladder, or help with buy to let ambitions (including holiday let).

Sometimes known as the Bank of Mum and Dad, this form of intergenerational lending can often flip to the Bank of Son and Daughter.

‘Gifted deposit’ is exactly what it says on the tin! A close family member ‘gifts’ the deposit to the buyer.

Joint Borrower Sole Proprietor is where not all mortgage borrowers are legal owners of the property (so not on the deeds) but have been added to the mortgage to help the owners achieve the mortgage.

Proprietor is just another word for owner. It means this person is on the property deeds and is the legal owner.

Family members who can support are with our family assist mortgages are parents, grandparents, son, daughter, brother or sister, stepfamily, and adoptive family.

Yes you can.

One reason a borrower might want a family assisted mortgage is to help with affordability. Maybe their salary doesn’t cover the mortgage amount they need to buy a home.

Or grandparents might wish to gift a deposit to grandchildren to enable to them to buy their first home.

It could also be the case that an older family member is heading into retirement and wants their children on the mortgage to enable them to buy a home, or to stay in their current home.

Separation often calls for family support. Adding family members onto a mortgage might allow someone to buy out their former spouse and stay in their home, or to enable them to move to a new home.

Yes, up to two people can be proprietors, with up to two additional borrowers helping with affordability , so up to four borrowers in total.

Those looking for a buy to let mortgage may wish to reach any minimum income requirements by adding on another borrower, but not wish for this person to be an owner.

This is because if the family member(s) assisting owns another property (such as their own home) the buy to let would then attract an additional stamp duty levy (payable when buying a second property).