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How does it work?

The principle behind the Family Mortgage is simple. Most young adults don’t have a lot of money. That means they will only have a small deposit to put down on a property and they miss out on most of the better mortgage rates. At the same time, families may have savings and property that could be used as security for a buyer. The Family Mortgage brings these wider family assets into the mortgage calculation, helping to reduce the cost for the buyer but not asking family members to hand it over as a gift.

The following short video explains how the Family Mortgage works...

Family Mortgage Video

Working with family members may help buyers:

  • get lower interest rates, meaning lower monthly payments;
  • pay interest on a smaller amount of the mortgage, meaning lower monthly payments;
  • increase your buying power when choosing a property to buy.

Working with buyers helps family members to:

  • put assets to work for the buyer as security for the mortgage;
  • help the next generation own their own home without giving the money as a gift.
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 meeting certain conditions we'll meet the mortgage payments for up to six months should they become unemployed through no fault of their own. 

After 10 years many things will have changed: the buyer's earnings and personal circumstances, such as starting a family; the value of the property; the amount of the mortgage outstanding.
Provided the mortgage payments have been kept up to date, after 10 years the additional security given by family members can be released, leaving the buyer with a normal mortgage.
The buyer should of course take steps, such as saving disposable income, to ensure that they’re ready for the additional financial responsibility.
Where the Family Offset Account option was chosen when the mortgage was taken out, the offset support will be removed at the end of the fixed rate product term applying at the 10 year point. Payments are likely to rise at this point as the buyer takes on responsibility for repaying the whole mortgage. If due to unforeseen changes in circumstances, the buyer is unable to meet the mortgage payments then it may be necessary for the buyer to sell the property to repay the mortgage. Alternatively it may be possible to remortgage to another lender.
An added benefit – a one off six months of unemployment cover is built into the product
We’ll meet the buyer’s mortgage payments for up to six months should they become unemployed through no fault of their own, subject to certain conditions being met. This gives them a safety net should this happen. We believe this feature is unique in the marketplace.

Make a mortgage enquiry

If you’re considering our Family Mortgage, either for yourself or a family member, please complete our enquiry form to have someone in our friendly New Business Team contact you. We can answer any questions you have about the Family Mortgage and arrange a free, no-obligation appointment with one of our Mortgage Advisers.

Question 1

What is the likely cost of the property?


Question 2

How much is available for the deposit? (Minimum 5% of the property value)


Question 3

How much do parents or family members have as savings which would be set aside for at least 3 or 5 years (up to a maximum of 10 years) as security for the mortgage?


Question 4

Do parents or family members own a property which could be used as security for a mortgage? If so, how much of its value could be used as security for at least 3 or 5 years (up to a maximum of 10 years)?


Please provide your contact details and a member of our team will be in touch with you in the next 48 hours*.






* Our telephone lines are open from Monday to Friday: 8am to 5:30pm and Saturday: 9am to 12pm.

Follow these links to find out more about how the Family Mortgage could work for you:

You can use one, two or all three of these methods in combination to help a buyer get the home they want.


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Family Mortgage   
Family Mortgage - Security through property case study
Family Building Society
Ebbisham House
30 Church Street
Surrey KT17 4NL
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