From Gifted Deposit Gifts to Joint Mortgages: Ways to Help Family Buy a Home

Supporting a loved one onto the property ladder is one of the most rewarding ways to make a lasting difference in their life. Whether it’s helping with a deposit, boosting their mortgage affordability, or exploring joint ownership options, there are more ways than ever to turn homeownership dreams into reality.

While parents and grandparents often step in to help adult children, these solutions are just as relevant for siblings, partners, friends, and even adult children supporting their parents. No matter your family dynamic, there’s a growing range of flexible, practical options designed to make buying a home more achievable—for everyone. Where we reference ‘child’, we’re assuming that the child is at least 18 years old.

One of the most common and effective ways parents can help their children onto the property ladder is by gifting a deposit. This generous contribution can significantly boost a buyer’s chances of securing a mortgage, but it’s important to follow the correct process. Lenders typically require a formal declaration confirming the money is a genuine gift, not a loan, often in the form of a signed gift letter.

If your child is buying with a partner, the gift is usually considered to be for both parties, and once given, you won’t have any legal claim to the funds—even in the event of a relationship breakdown. While there’s no expectation of repayment, it’s wise to document the gift clearly to avoid any future misunderstandings. Large gifts may also have implications for inheritance tax planning, so seeking professional advice is recommended if you’re gifting a substantial amount.

If you’re planning to gift money to your son or daughter but want to safeguard your contribution, there are several ways to do so. A Declaration of Trust can help ring-fence your gift, especially if your child is buying with a partner, although not all mortgage lenders will accept this arrangement. Similarly, a cohabitation agreement or prenup can outline what happens to assets in the event of a separation—while not always legally binding, they can still offer valuable clarity. It’s also wise to avoid joint ownership unless you’re fully comfortable with both parties having equal rights to the property.

For those who want more formal protection, taking a second charge over the property is an option. This works like a secured loan and ensures your financial interest is recognised if the property is sold or circumstances change. However, it does require legal documentation and will limit your child’s mortgage options, so professional advice is essential. Open conversations and early legal guidance can go a long way in navigating these decisions with confidence and care.

If you’d like to help a loved one buy a home but prefer to keep your savings protected, gifted savings products could be the perfect solution. Innovative options like the Barclays Springboard Mortgage or Generation Home’s Deposit Booster allow you to support a buyer by placing funds into a linked savings account, rather than handing over a lump sum. These funds are held securely for a set period—typically a few years—and as long as mortgage repayments are made on time, you’ll get your money back, often with interest. It’s a smart way to avoid the risks and awkwardness of informal loans or outright gifts, while still giving your loved one a meaningful boost onto the property ladder.

If you have equity built up in your home, it can be a powerful tool to help a family member onto the property ladder. One option is to remortgage to release funds, which you can then gift—provided your affordability checks out and you’ve considered the long-term financial impact. For older homeowners, equity release or retirement interest-only (RIO) mortgages offer alternative ways to unlock the value in your property. These products allow you to access funds without monthly repayments, with the loan typically repaid when the property is sold or upon death. While these routes can be incredibly helpful, they do come with important considerations, so it’s essential to seek professional advice to fully understand the risks, benefits, and any alternatives available.

If you’d prefer not to release equity but still want to support a loved one’s home purchase, some lenders offer guarantor-style mortgages that allow you to use the equity in your home as security. This can enable your child to borrow at a higher loan-to-value (LTV)—sometimes even up to 100%—without needing a deposit. While the mortgage must still be affordable based on your child’s income alone, your backing can make a significant difference in their borrowing power. However, it’s important to understand that this could affect your own ability to borrow in the future. Make sure you’re fully aware of the terms and have a clear exit strategy in place. As always, professional advice is key to making an informed decision.

You can act as a guarantor on their mortgage. This means you agree to cover the repayments if they’re unable to, which can significantly boost their borrowing power—especially if they have a limited deposit or income. However, it’s important to understand that this role carries financial risk, as your own assets could be at stake if things go wrong. It may also impact your ability to borrow in the future. Before committing, make sure you fully understand the terms of the agreement and have a clear exit strategy in place. Seeking professional advice is essential to ensure this option aligns with your financial goals and comfort level.

A Joint Borrower Sole Proprietor (JBSP) mortgage boosts the buyer’s affordability by taking all incomes into account (typically up to 4) — without the need for all borrowers to be named on the property title. As the joint borrower(s), you’re included in the mortgage application, which can increase the amount your child is able to borrow, but you won’t legally own any share of the property. This setup is particularly useful for inheritance planning and avoiding additional stamp duty charges that can apply to second homes. However, it’s important to understand that you’ll be jointly and wholly liable for the full mortgage debt, despite not holding any legal ownership of the asset. Lenders will assess all incomes, so you’ll need to be comfortable with the financial commitment, and independent legal advice is usually required to ensure everyone understands their responsibilities.

Helping someone onto the property ladder is a generous and life-changing gesture, and with the right approach, it can be done in a way that works for everyone involved. Whether you're gifting a deposit, using your savings creatively, or exploring more structured options like guarantor or JBSP mortgages, there’s a solution to suit nearly every family dynamic and financial situation. The key is to plan carefully, seek professional advice, and have open conversations from the start.

If you’d like to discuss your options or would like our help in securing the best mortgage deal for you and your family member, call us on 08000 38 37 36 or click here to arrange your free appointment.

Equity release and RIO mortgages may affect inheritance and long-term financial planning.
Guarantor arrangements and JBSP mortgages carry full liability for the debt.