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.
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
At Mortgageforce, we understand the challenges of buying your first home, and the reality that family help is often essential. Our team has years of experience with family mortgages and knows how to structure them to benefit everyone.
We’ll explain your options in plain English, make sure the paperwork is watertight, and keep things as straightforward as possible. Whether you’re the buyer or the backer, we’ll support you every step of the way.
Let’s make your home happen
Family mortgages can be a brilliant solution when done right. They offer freedom, flexibility and financial confidence, all with your loved ones by your side.
If you’d like to find out more about how a family mortgage could work for you, talk to Mortgageforce today.
A team of industry pros to guide you each step of the way
Most people find that mortgage financing is complicated and confusing. We help you buy your dream home by simplifying the mortgage financing process with personalised loan options that save you time and money.
