Family Assist Mortgages

Helping You Step onto the Property Ladder with Family Support

In today's housing market, saving for a substantial deposit can be a significant hurdle for many aspiring homeowners. Family Assist Mortgages offer an innovative solution, enabling family members to support you in purchasing your home without the need for a traditional deposit.

What is a Family Assist Mortgage?

A Family Assist Mortgage allows a borrower to leverage the financial support of family members to secure a home loan. This assistance can come in various forms:

  • Income Boosters: Family members can add their income to your mortgage application, increasing your borrowing capacity. They are liable for the mortgage but do not own the property or appear on the deeds, avoiding additional stamp duty implications.

  • Deposit Boosters: Family members can contribute to your deposit as a gift, loan, or equity investment, helping you meet the lender's deposit requirements.

  • Security-Based Support: Some lenders allow family members to provide security through savings held in a linked account or by placing a charge on their own property. This can enable you to borrow up to 100% of the property's value without a cash deposit.

Who Can Benefit?

Family Assist Mortgages are ideal for:

  • First-Time Buyers: Struggling to save for a deposit while paying rent.

  • Home Movers: Needing additional support to upgrade or relocate.

  • Those with Limited Income: Benefiting from the added income of a family member to increase borrowing potential.

How Does It Work?

  1. Assessment: The lender evaluates the combined income (if using an income booster) or the security provided by the family member.

  2. Application: You apply for the mortgage with the family member's support factored in.

  3. Agreement: Legal agreements are established to outline the responsibilities and terms of the family member's involvement.

  4. Repayment: You make the mortgage payments, with the family member stepping in only if necessary, depending on the arrangement.

Advantages

  • Increased Borrowing Power: With additional income or security, you may qualify for a larger loan.

  • No Need for a Cash Deposit: Some arrangements eliminate the requirement for an upfront deposit.

  • Flexible Support Options: Choose the type of assistance that best suits your family's financial situation.

Considerations

  • Risk to Family Members: They may be liable if you default on payments.

  • Legal Implications: It's crucial to have clear agreements to protect all parties involved.

  • Impact on Relationships: Financial arrangements can affect personal relationships; open communication is key.

Generation Home's Approach

Generation Home offers flexible options for family-assisted mortgages:

  • Income Booster: Allows family members to contribute their income to your mortgage application, increasing affordability without adding them to the property deeds.

  • Deposit Booster: Enables family members to assist with your deposit through various means, including gifts or loans.

These options are designed to make homeownership more accessible, reflecting the evolving dynamics of modern families.

Ready to Explore Your Options?

If you're considering a Family Assist Mortgage, we're here to guide you through the process. Contact us today to discuss how we can tailor a solution to fit your unique circumstances.

Note: The information provided is for general guidance only and does not constitute financial advice. Please consult with a mortgage advisor to explore the best options for your situation.