Family Mortgages 

Updated 7th December 2020

Family Mortgages 

The mortgage market has seen a positive shift towards the introduction and improvement of family mortgages. There is now more help for first-time buyers, and it is possible to get onto the property ladder without an actual cash deposit.

This article will outline everything you will need to know about the alternatives to Barclays Family Springboard Mortgages. For the most up to date information make an online enquiry or call us 0300 124 5655 . We will put you in the contact with the best family mortgages broker for your situation.

There are also a variety of different similar schemes available, which we will cover in this article. Your family mortgages advisor will be best place to recommend the most suitable product for your needs.

Scroll down for more information and FAQ’s.

 

What are the alternatives to Barclays Family Springboard Mortgages?

Barclays Family Springboard Mortgage is not the only option available when looking to help family members get on the property ladder. While there are a few options available under a lender scheme or product, the majority of these are firmly aimed at clean credit clients. Does this therefore mean that there are no options available to clients with less than perfect credit history? Read more to find out the family mortgages options available.

Nationwide Family Deposit Mortgage

How does a Nationwide Family Deposit Mortgage work?

To qualify for the Nationwide Family Deposit Mortgage, you and the giftor will have to meet the following criteria;

  • The giftor will need to be an existing Nationwide mortgage customer, and will provide the gifted deposit to the family member by borrowing against part of the equity in their home.
  • The person receiving the gift will need to be one of the following direct family members – children, stepchildren, spouse, civil partner, parent, brother, sister, grandparent or grandchild.
  • Applicant receiving the gift will either be buying their first home, or moving home with a Nationwide mortgage.

This family mortgages scheme works in a similar way to a standard gifted deposit mortgage However, this is more restrictive due to the fact that both the giftor and buyer have to have mortgages with Nationwide which may not be an option for all people.

Halifax Family Boost Mortgage

How does the Halifax Family Boost Mortgage work?

The Halifax Family Boost Mortgage is more in line with the Barclays Family Springboard Mortgage. Whereby you do not need to provide a lump sum as a gift – instead putting aside 10% of the property purchase price into a 3 year fixed term savings account.

This is a more attractive proposition for the family member providing the savings. The savings are tied in for 2 years less that the comparable Barclays mortgage.

Once the 3 year fixed term is over, the family member who provided the saving will get their savings back (with interest), as long as all mortgage payments have been made. If there are any arrears on the mortgage at the end of the 3 year period, Halifax make settle these from your savings.

Post Office Link Mortgage

How does the Post Office Family Link Mortgage work?

The Post Office family Link Mortgage is only a realistic option for first time buyer with good affordability. The applicants parents who are property owners with a property owned outright (no existing mortgage).

The first-time buyer takes out a 90% Post Office Family Link Mortgage against the property they are purchasing, with the other 10% being secured against the family members mortgage free home. The 10% mortgage on the family members home is interest free, however this is only over a 5 year period which is why the affordability needs to be good as the first time buyer will be responsible for the repayments on both parts of the mortgage.

Both the first-time buyer and family member will need to have good levels of affordability and will need to have a healthy credit score. Both parties will be credit checked and assessed for affordability. The 10% interest free loan will need to finish before the family members 75th birthday.

Lloyds Lend a Hand Mortgage.

How does the Lloyds Lend a Hand Mortgage work?

Much like the Halifax Family Boost Mortgage, Lloyds Lend a Hand Mortgage requires a family member deposit 10% of the purchase price of the first-time buyers property into a savings account for 3 years.

Once the 3 year fixed term is over, the family member who provided the saving will get their savings back (with interest) as long as all mortgage payments have been made. If there are any arrears on the mortgage at the end of the 3 year period, these may be taken from your savings.

This scheme is only available in England and Wales. Either the first-time buyer or the family member must have a Club Lloyds Current Account before applying for the mortgage.

What options are available if I have bad credit?

Although the above schemes are aimed firmly at buyers with clean credit, the good news for buyers with less than perfect credit scores/profiles is that gifted deposits are generally accepted by all specialist lenders. Read more about gifted deposit mortgages here.

Speak to a Family Mortgages Advisor.

Being a first-time buyer can often seem daunting, the advisors we work with will explain the process from start to finish.

Our first-time buyer, family mortgages experts will look at each case before deciding which lender is right for you and your individual circumstances. All the family mortgages brokers we work with are whole of market and offer unbiased advice. They will have access to all the specialist lenders to really enhance your chances of achieving the mortgage you need.

The family mortgages brokers we work with have experience in dealing with all aspects of family mortgages, and importantly using the whole of the market to access the best deals available.

To find out how we can help call us on 0300 124 5655 or complete our enquiry form to speak to a mortgage expert.

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