Family Springboard Mortgages Explained: A Guide for First-Time Buyers & Supporters

Family Springboard Mortgages

Getting on the property ladder is tougher than ever due to rising property prices, high deposit requirements, and tighter lending rules are making it difficult for many first-time buyers.

Springboard mortgages, also known as family assist mortgages, offer a powerful solution by allowing family or friends to help without gifting cash outright. For buyers who don’t have enough for a traditional house deposit, springboard mortgages can provide an alternative route to homeownership.

At Option Finance, we help first-time buyers and families understand how springboard mortgages work and how to structure the application to meet lender requirements. These mortgages are designed to help buyers get on the property ladder even if they lack a conventional house deposit.

What Is a Springboard Mortgage?

A springboard mortgage allows a buyer to purchase a home with little or no deposit (or down payment) by using a family member’s savings or property equity as security. These mortgages can even allow you to borrow up to 100% of a property’s value by linking your mortgage to a friend or relative’s savings.

Instead of gifting a deposit, the family member puts money in a linked savings account or uses their property as collateral. By putting their funds into this account, the family member provides security for the mortgage, acting as a “springboard” for the buyer to access a higher loan-to-value (LTV) mortgage.

In most cases, the funds are held for a defined period or fixed period (usually 3–5 years), and if mortgage payments are maintained, the family’s funds are returned with interest. However, the funds deposited by the guarantor are locked away for five years.

Who Can Benefit from a Springboard Mortgage?

Springboard mortgages are ideal for:

• Home buyers, especially first-time buyers, with low savings but family support
• Young professionals with strong income but no deposit
• Parents or grandparents who are typically a homeowner and want to help without permanently giving away savings
• Siblings or close friends, or a close relative, who can provide temporary security (in most cases, the supporter must be a close relative)
• Buyers in areas where deposits would otherwise take years to save
• It’s an alternative to gifting a deposit outright, providing support without losing long-term access to savings.

How Does a Springboard Mortgage Work?

There are two common springboard models. Springboard mortgages are a type of security mortgage, where a family member provides financial support or collateral to help the buyer. They are closely related to other guarantor schemes and family mortgages that enable homeownership through family involvement.

1. Savings-Based Security

• A family member puts 10–15% of the property purchase price into a linked savings account with the lender, putting their own funds at risk as security for the mortgage.
• This account is held for a set period (typically 3–5 years).
• No withdrawals are allowed during this time.
• If the buyer keeps up with repayments, the money is returned (plus interest in some cases).

2. Property-Based Security

• A charge is placed on the family member’s property, offering the lender extra security.
• No cash is required up front, but the guarantor may be liable if the buyer defaults.
• More common with 100% LTV options or when deposit is extremely low.
• If the homebuyer cannot make their monthly payments, the lender may hold the deposit in the Helpful Start Account for a slightly longer period than originally agreed.

Lender Requirements: Who’s Eligible?

To qualify for a springboard mortgage, borrowers and their family supporters must meet specific eligibility criteria, which are the requirements lenders use to assess whether borrowers qualify for a mortgage:

• Borrowers must have a good credit history.
• Borrowers need to provide proof of income and employment.
• The family supporter must have sufficient savings to deposit into the linked account.
• Borrowers must meet the lender’s age and residency requirements.
• Existing debt levels can affect a borrower’s eligibility, as lenders consider overall debt when assessing applications.

Specialist lenders may offer springboard mortgages and other guarantor schemes, providing more options for borrowers who need alternative solutions.

For the Buyer:

• Age: Usually 18–40 years old
• Income: Lenders will assess the home buyer’s financial situation to ensure they meet affordability checks
• Credit History: Must be clean or very limited adverse
• Property Type: Standard residential homes only (no new-build flats or unusual construction)
• Deposit: Usually 0–5%

For the Family Member (Supporter/Guarantor):

• Savings: Typically 10–15% of the purchase price (in a separate account)
• Income/Financial Security: The supporter, often a family member, must demonstrate financial security and show affordability in case of default (if using equity as security)
• Credit Score: Should be good to excellent
• Relationship: Must be a close family member or, with some lenders, a friend

Which Lenders Offer Springboard Mortgages?

Availability may vary. Some lenders only offer springboard mortgages through brokers.

Check the latest mortgage rates for these family support and guarantor mortgage products to find the best deal for your situation.

These products can help families unlock money from savings or property equity to support a loved one’s home purchase.

How to Prepare for a Springboard Mortgage

If you’re planning to apply for a springboard mortgage, here’s how to get ready:

Start by having an open conversation with your family member who will be supporting you. It’s important that both you and your supporter understand the responsibilities involved, and both you and your supporter should seek independent legal advice from separate solicitors to ensure everyone’s interests are protected.

If you’re interested in learning more about springboard mortgages or want to start your application, explore our additional resources or contact us for guidance.

1. Review Your Credit Score

Check your credit file for errors or missed payments. Even small issues can affect eligibility.

2. Gather Proof of Income

Have your last 3 months’ payslips and bank statements ready. If self-employed, 1–2 years of accounts may be needed.

3. Understand Affordability

Lenders will stress test your income. Use an affordability calculator or speak with a broker to estimate how much you can borrow.

4. Talk to Your Family Member

They need to understand the legal implications. We always advise getting independent legal advice before proceeding, as family springboard mortgages are a type of guarantor mortgage that requires this step for the guarantor.

5. Work with a Mortgage Broker

Not all lenders offer these products directly to the public. A broker will identify which lender is right for your profile and help package the application professionally.

Final Thoughts from an Experienced Broker

Springboard mortgages can be a game-changing solution for families looking to support the next generation onto the property ladder without giving away their life savings. However, you may lose some or all of your savings if the property is repossessed due to mortgage non-payment.

At Option Finance, we’ve helped many first-time buyers structure successful springboard applications. Whether you’re a parent, grandparent, or a young buyer ready to take your first step, we’ll give you honest advice and access to lenders that suit your goals.

Get help from an experienced mortgage broker.

You can speak to one of our specialist mortgage brokers who would be able to guide you through the process. They will advise if there is a lender available and the maximum loan amount based on your circumstances. We are a whole of market mortgage brokerage with access to all lenders. Call us on 01332 470400 or complete the form with your details for us to give you a call back.

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