Service update - due to planned essential maintenance our Online Service will be unavailable on Friday 28 January from 18:00 until Saturday 29 January 12:00.
Following the Bank of England’s decision to raise the Bank Rate by 0.15% to 0.25% in December 2021, Windfall Bond and Tracker Savings Bond rates increased by 0.15% from 1 January 2022. Tracker mortgages changed from 25 January and we have written to customers individually with revised payment details where the new rate exceeds the minimum rate (or ‘floor’) already applying to their mortgage. We will be considering our other savings and our variable mortgage rates after the Bank of England MPC meeting on 3 February. (Notice updated 19/01/22)
- Please note that the Premium Saver (5) has now been withdrawn from sale.
If you have opened an account, you may add funds until 3pm, 7 February 2022, after this no additions will be allowed.
Can my parents get a Buy to Let mortgage and rent out to me?
We can help to answer your question about your parents potentially being your landlord.
There are legal rules and regulations of letting a property, regardless of if its to a family member or to the general public.
Renting from your parents isn’t a practical solution – your parents would effectively be masquerading as landlords when in reality they just want to help you live in your own property. They’d have to declare the rental income too and pay tax on any profit they make.
There are family assisted mortgages available to borrowers who have small deposits and whose family are able to help them get their foot on the property ladder.
Some don’t even need any assessment of your parent’s income and outgoings – they’re only needed as a safety net in the worst case scenario.
Your parents or other family members need to be comfortable with either their property and/or savings being used as security for your mortgage.
Family members providing financial support should
be aware that if you are 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.
The Bank of Mum and Dad
It's now quite common for young people, and particularly first time buyers, to receive a contribution from parents or other family members to help with a house purchase.
We've carried out research, in conjunction with the London School of Economics, to look at how families approach this parental help.
Off the back of this research we've produced a range of guides that highlight important things families need to consider. These include guides that highlight financial considerations and legal implications that families should be aware of, and how to approach the often difficult first conversation of financial assistance when buying a home. You can find out more here.
Getting a mortgage - what you need to know
Our comprehensive guide highlights everything you need to know about getting a mortgage, including useful tips for first time through to last time buyers.
Your mortgage questions answered
We can help. We've created a list of some of the most frequently asked mortgage questions.