Family Assist Mortgages

Taking the first step on the property ladder is often out of reach for most young people due to the substantial deposits required.

Lenders continually change their deposit requirements, and less well-known banks could be in a position to help, therefore you may be eligible.

However, measures are being taken to help overcome the obstacles to home ownership, and many of the major banks and building societies now offer a Family Assist Mortgage, or a family offset mortgage, which can help an individual to become a home owner by allowing a member of their family to act as a guarantor.

This works by allowing a person to take out a mortgage of 95% upwards, while the parent or other close family member pays 20 -25% of the deposit in to a held savings account.

With a Family Assist Mortgage, the relative will put their money into an account, which will then be linked to the family member’s mortgage account. The amount deposited into a savings account will remain there for a period of time and will be locked in so that it cannot be spent; if all of the mortgage payments have been made, then the money will be returned to the family member that loaned the money.

If a family member doesn’t have a lump sum of money that they can use as a loan to help their children out with a mortgage, or if a parent does not want a sum of money secured on their home, then there are other ways that a Family Assist Mortgage can be structured. These options include:

A co-ownership arrangement
A second property can be purchased, which can then be used by other family members

Benefits of a Family Assist Mortgage

The main advantages of a Family Assist Mortgage are the lower interest rates, and a family member won’t have to give up their savings that they might have been putting away for their retirement.


Some banks and building societies have an upper age of limit of 70-75 of the guarantor and the buyer must be able to provide evidence that they can cover the monthly payments.

Further Information

A Family Assist Mortgage is a complicated process so it is essential to get independent advice before entering into any agreements. For independent advice on how a Family Assist Mortgage can help you or a family member to get on to the property ladder, call 01844 390910 and speak to a Bright Money advisor.