What are Family Mortgages?
A family mortgage can take different forms, but one popular option is the joint borrower, sole proprietor model. Here, a family member’s income is added to the application to increase affordability, but their name doesn’t go on the deeds. This avoids additional stamp duty and keeps ownership simple.
Another version involves a relative providing savings as security, often placed into a linked account. This boosts the deposit without giving away the money permanently. After a set number of years, assuming mortgage payments have been kept up, the funds are returned.
Family mortgages are built on trust. But with the right structure, they can protect everyone involved.
Who can it help?
Family mortgages are ideal for:
- First time buyers struggling with affordability
- Buyers with a small deposit
- Families looking for a flexible, low-risk way to support loved ones
- Those wanting to avoid joint ownership or gifting large sums
They’re especially useful where someone has a good income but can’t borrow enough on their own.
How Does a Joint Borrower Sole Proprietor Mortgage Work?
A joint borrower sole proprietor mortgage allows a family member, usually a parent, to support a mortgage application without being named on the property deeds.
In simple terms, two or more people are named on the mortgage agreement, but only one person owns the property.
This structure helps increase affordability. The supporting family member’s income is taken into account by the lender, which can significantly boost the amount that can be borrowed. This is particularly helpful for first time buyers whose income alone may not meet lender requirements.
Because the supporting borrower is not on the title deeds, they do not legally own the property. This can help avoid additional stamp duty charges that might apply if the parent already owns a home. It also keeps ownership straightforward, with the buyer remaining the sole legal owner.
However, all borrowers are jointly responsible for the mortgage repayments. If payments are missed, the lender can pursue any named borrower for the full amount. That’s why it’s important for everyone involved to understand the commitment before proceeding.
Many joint borrower sole proprietor mortgages are structured so that the supporting family member can later be removed from the mortgage, once the main borrower’s income has increased or the loan has reduced.
When arranged correctly, this type of family mortgage can provide a practical, lower-risk way for parents to help children onto the property ladder without gifting large sums or becoming co-owners.
Family Mortgage FAQs
Compare Family Mortgage Options
| Feature | Joint Borrower Sole Proprietor | Family Savings as Security | Gifted Deposit |
|---|---|---|---|
| Who owns the property? | Main applicant only | Main applicant only | Main applicant only |
| Who is on the mortgage? | Buyer + supporting family member | Buyer only | Buyer only |
| Does the family member use their income? | Yes | No | No |
| Is money permanently given? | No | No (held temporarily) | Yes |
| Stamp duty implications | Often avoids additional stamp duty | No ownership impact | No ownership impact |
| Risk to family member | Responsible for repayments | Savings locked temporarily | No ongoing liability |
| Best suited for | Buyers who need increased borrowing power | Buyers with small deposits | Buyers needing deposit support |
Advantages and considerations
Pros:
- Increases borrowing potential without needing co-ownership
- Helps buyers with little or no deposit
- Keeps things in the family, often without gifting money
- Avoids extra stamp duty charges for parents with existing homes
Cons:
- Supporting family members may need to lock away savings temporarily
- All borrowers are jointly responsible for repayments
- Affordability checks apply to everyone involved
It’s important to talk through the responsibilities clearly before committing.
Why Choose Mortgageforce for a Family Mortgage?
Family mortgages need careful structuring to protect both the buyer and the relative providing support. Our advisers have extensive experience arranging Joint Borrower Sole Proprietor and family-assisted mortgages, ensuring affordability is maximised while keeping ownership and tax implications clear.
We explain everything in plain English, manage the paperwork from start to finish, and make sure the arrangement works for everyone involved — now and in the future.
Make Your Family Mortgage Work the Right Way
With the right advice, a family mortgage can provide flexibility, security and a clear path onto the property ladder — without unnecessary risk or complexity.
If you’re considering using family support to buy a home, professional guidance is essential.
Speak to a Local Family Mortgage Adviser
Our advisers provide independent, whole-of-market mortgage advice, combining up-to-date lender criteria with knowledge of your local property market.
- Mortgage Broker in Cambridge
- Mortgage Broker in Derby
- Mortgage Broker in London
- Mortgage Broker in Edinburgh
Our local advisers provide independent, whole-of-market mortgage advice tailored to both national rate trends and local property markets.
You can also explore our latest articles in our Family mortgage guides section.
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