Family springboard mortgages
Discover how a family springboard mortgage could help you buy your first home with no deposit.
What is a springboard mortgage?
A family springboard mortgage is a type of mortgage designed to help first-time buyers who are struggling to save up a deposit.
Rather than provide your own deposit, a family member will use their savings as the security for the property. Family springboard mortgages are a product specifically offered by Barclays, but there are other similar deals, including:
Family boost mortgages (Halifax)
Family deposit mortgages (Nationwide)
Lend a hand mortgages (Lloyds Bank)
They all work in similar ways and are essentially a type of guarantor mortgage, where a family or loved one helps you get your first mortgage.
How do springboard mortgages work?
A family member will effectively use their savings as the deposit for your mortgage. However, instead of the money going towards the purchase of the property, it is invested into a savings account with the lender.
They will need to provide at least 10% of the property’s value, and it will be held in the account for a set period of time, usually five years. Once deposited, it’s not possible to add or remove money from the account.
At the end of the term, they will get the money back, plus any interest earned, provided you keep up with your repayments. The family member won’t own any part of the property, nor will their name appear in the title deeds.
What happens if I default on my mortgage?
If you fall behind on your mortgage payments, the lender may hold onto the savings for longer than the agreed term. If they need to repossess the property, the family member could lose some or all of their money.
For this reason, the lender may ask the family member to get independent legal advice before agreeing to help you get a springboard mortgage.
What family members can help?
Any member of your family can help and participate in a springboard mortgage with you. Typically, this will be parents, grandparents or guardians, but it could be a sibling, aunt or uncle or your children.
Some lenders don’t specify that only family members can help and will allow friends to participate, provided they understand the risks involved.
Are springboard mortgages a good idea?
A springboard mortgage can be a good way to help you buy your first home; however, you will need to have a family member willing and able to help you.
There are several pros and cons to springboard mortgages that you and the family member helping you should consider before applying.
Pros and cons of springboard mortgages
Pros of springboard mortgages
They can help you get onto the property ladder without a deposit.
Own the property
You own 100% of the property outright yourself.
You could access a better interest rate than with a 95% mortgage.
The family member will earn interest on the money they deposit.
Cons of springboard mortgages
Money at risk
The family member helping you will be putting their money at risk.
They will be unable to access their savings for the set period.
With a 100% mortgage, you are at risk of going into negative equity if house prices go down.
The interest rate may be higher than if you can put down a deposit of 10% or more.
Alternatives to springboard mortgages
Our expert says...
“Getting your foot on the first rung of the property ladder is more challenging than ever, but a family springboard mortgage can help.
“It’s a way for family members to help while also earning interest on their savings - however, there are still risks involved. Our expert advisors can discuss all your options to help you determine if a springboard mortgage is right for you.”
Springboard mortgages FAQs
What people are saying about Better.co.uk...
Important info & marketing claims
You may have to pay an early repayment charge to your existing lender if you remortgage. Your savings will depend on personal circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.
*The savings figure of £506 is based on Better.co.uk remortgage customers in December 2023. Read more on our marketing claims page.
We can't always guarantee we will be able to help you with your mortgage application depending on your credit history and circumstances.
Average mortgage decision and approval times are based on Better.co.uk's historic data for lenders we submit applications to.
Tracker rates are identified after comparing over 12,000 mortgage products from over 100 mortgage lenders.
As of January 2023, Better.co.uk has access to over 100 lenders. This number is subject to change.
For buy-to-let landlords, there's no guarantee that it will be possible to arrange continuous letting of a property, nor that rental income will be sufficient to meet the cost of the mortgage.