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Security through property
How family can use the value in their property as security to support the Family Mortgage.
If your family want to help you to buy a home but aren’t able to give you a gift or loan, they can still help by providing security through their own home. If you have a minimum of 5% deposit, from savings or a gift, family members can give a charge over some of the value in their own property.
By providing this security it will lower the interest rate that the buyer might otherwise not be able to get and so reduces their monthly payments.
Things to remember
- Family members providing financial support should be aware that if the buyer is unable to meet the mortgage payments, the security they have provided is at risk if the property needs to be sold and there is a shortfall.
- However during the first 10 years we do provide the buyer with important protection. Subject to certain conditions we'll meet the mortgage payments for up to six months should they become unemployed through no fault of their own, on a one-off basis.
You probably have a lot of questions about how the Family Mortgage could work for you - we are here to help. You can also read our frequently asked questions from the buyer and the family helping the buyer.
You can find out more about the other Family Mortgage options here:
To find out more about our Family Mortgage you can contact our friendly New Business Team.