Notices
  • The Capital 90 (1) 1.06% AER - is now on general sale and can be applied for exclusively online. £20,000 minimum deposit. You can add funds to the account until 3pm, 26 November 2021, after this no additions will be allowed. Find out more
  • Premium Saver (4)  0.65% AER - is now on general sale and can be applied for exclusively online. £10,000 minimum deposit. You can add funds to the account until 3pm, 5 November 2021, after this no additions will be allowed. Find out more

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.

 

Case study

See how this type of mortgage could work for you. Our case study shows how George helped his step-daughter Christine, to get a better interest rate on her mortgage using the value in his property.

 

What next?

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.

Call us on 03330 140144 Ask us to call back  Email us

 

You can find out more about the other Family Mortgage options here:

Case study

Read our case study which shows how George helped his step-daughter get a mortgage at a reduced rate.

Any questions?

To find out more about our Family Mortgage you can contact our friendly New Business Team.