Family by name, family by nature – a 100% LTV mortgage with family assistance

The buyers don’t have a deposit and want to use security provided by their family. With no deposit, the family members will need to provide security of 20% of the purchase value – in this case £70,000.  

The supporting family members can provide this security by depositing £70,000 in a Family Security account (which will accrue interest) or provide a collateral charge of £70,000 over their property. Or they can mix and match this by depositing some of the security in savings and the rest through a collateral charge.  

The security is only held by us for the length of the five-year fixed term of the product, and as long as they borrowers have kept up with their mortgage payments, the security will then be released.  

If the buyers have a deposit, this will be deducted from the security amount needed. For instance, if the buyers were able to put down a deposit of £20,000, the security needed by family members would be reduced to £50,000.  

Who can support the Family Mortgage  

As a lender catering for modern families, our criteria is built around flexibility. We don’t restrict family support to just parents – grandparents, step-parents, aunts, uncles and adult siblings can all provide security. Up to four family members can provide security and a mix of relatives can support the mortgage, for example two sets of parents supporting a couple. And the Family Mortgage isn’t limited to just first-time buyers. We know family assistance can be needed at whatever age and situation, so younger borrowers can also support older borrowers.

Find out more >

Some frequently asked questions 

What is the minimum and maximum loan amount clients can borrow? 

• The minimum loan amount is £96,000 

•  The maximum loan amount is £750,000. 

Who owns the property?  

• The borrower is the legal owner of the property 

• Family members who provide support do not have rights to the borrower’s property. 

Do borrowers have to be first time buyers?  

• No, the Family Mortgage isn’t just for first time buyers. If the borrowers already own a home and need some help to move to a bigger or different property, they can still apply. 

Can more than one family member help?  

• Yes, up to four family members can provide security though savings and/or property 

• Up to four individual Family Security Accounts can be opened with savings used as security 

• We’ll accept up to two properties as the security for the mortgage. If the property is jointly owned, then both owners must consent to this arrangement. 

Can a supporting family member with an existing mortgage still provide security through their property? 

• Yes – we can accept a charge over a supporting family members’ property even if they have an existing mortgage.  

Can a supporting family member providing security through their property move house?  

• If the family member moves house the collateral charge can be transferred to their new property – there may be some fees to transfer this charge. 

Can a borrower sell their property during the term of the Family Mortgage? 

• If the borrower’s property is sold for less than the outstanding mortgage balance (negative equity), supporting family members may be required to cover any shortfall, up to the value of the security amount. All family members must obtain independent legal advice. 

You can view our Family Mortgage details, download a Family Mortgage brochure and take a closer look at criteria here >  

Joint Borrower Sole Proprietor  

In our family assistance range, we also offer Joint Borrower Sole Proprietor (JBSP) products, where family members can go on the mortgage but not the title, using up to four incomes to boost affordability.  

We improved our JBSP offering last year, increasing max LTV up to 90%, increasing the maximum loan value to £1mn and widening the family members who could support the occupying borrower. 

Individual, case-by-case assessments  

A key distinction is the way we assess cases. Unlike those on the high street, we credit check rather than credit score and underwrite on a casebycase basis. 

We look at each case on individual merit in terms of the borrower. Brokers can come to us and tell us their client’s story, and we’ll handle the case with a more human touch than credit score lenders.  

Taken together, our enhanced Family Mortgage and JBSP range gives brokers a genuinely intergenerational toolkit: helping younger buyers who are thin on deposit, second steppers rebuilding after a setback, and older borrowers who are rich in equity but constrained by income – as well as extended families whose support doesn’t always fit the traditional mould.  

For brokers willing to look beyond the high street and dig into these resources, there’s often more that can be done for these complex, multigenerational cases than a sourcing system might initially suggest. 

We offer open-minded lending for families. Give us a call and see how we can say yes to your client. 

To contact our Mortgage Desk or your local BDM:  CALL US ON: 01372 744155   OR EMAIL: [email protected]

FAMILY BUILDING SOCIETY, EBBISHAM HOUSE, 30 CHURCH ST, EPSOM, SURREY KT17 4NL 
Family Building Society is a trading name of National Counties Building Society which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. National Counties is on the Financial Services Register Firm Reference Number 206080.