Family Springboard Mortgages: How Parents Can Help Without Gifting a Deposit

For many first-time buyers, saving a full deposit is the biggest challenge when trying to get on the property ladder. Rising rents and living costs make it harder to accumulate savings, even with good income and stable employment. That’s where family springboard mortgages can help. Instead of gifting money, parents provide temporary support using their own savings — allowing the buyer to obtain a mortgage with little or no deposit.

This guide explains how these products work, who they are designed for, and the key considerations for both buyers and family supporters. This article provides general information only and does not offer regulated mortgage advice.

---

What Is a Family Springboard Mortgage?

A family springboard mortgage is a type of mortgage where a parent or close relative supports the buyer by placing savings into a linked account, usually for 3–5 years. These funds act as security for the lender, enabling the buyer to borrow with a 5% or even 0% deposit.

Key characteristics:

• No deposit or low deposit required from the buyer
• Family savings are held as security rather than gifted
• Savings usually earn interest during the lock-in period
• Funds are returned if the buyer maintains repayments

This structure provides flexibility for families who want to help but cannot permanently part with their savings.

---

How Family Springboard Mortgages Work

Although specific terms vary between lenders, the typical set-up looks like this:

1. Buyer contributes little or no deposit

Some lenders allow:

• 0% deposit (buyer contributes none)
• 5% deposit (buyer contributes a small portion)

---

2. Family member deposits savings into a linked account

Usually 10% of the property price, held for a fixed period such as:

• 3 years
• 5 years

These savings stay in the helper’s name.

---

3. Lender uses these savings as security

If the buyer keeps up with payments, the family member gets their money back with interest. If payments are missed, the lender may extend the lock-in period or use some of the funds to cover losses.

---

4. Buyer assumes full responsibility for the mortgage

The supporting family member is not a co-owner and does not need to be on the mortgage.

---

5. Savings returned after the agreed period

If the buyer runs the mortgage well, the helper receives:

• Their original savings
• Interest (depending on lender terms)

---

Who Are Family Springboard Mortgages Designed For?

They are commonly used by:

• First-time buyers struggling to save a full deposit
• Renters whose monthly rent rivals typical mortgage repayments
• Buyers with strong affordability but low savings
• Families who want to help without permanently gifting money
• Parents who want to support children while retaining ownership of their savings

They can also help buyers who:

• Have limited credit history
• Are early in their careers
• Prefer not to rely on guarantor mortgages

---

Benefits of Family Springboard Mortgages

1. No deposit (or very low deposit) required from the buyer

This removes one of the biggest barriers for first-time buyers.

---

2. Family supporters retain ownership of their savings

Unlike a gifted deposit, the money doesn’t leave the family permanently.

---

3. Savings may earn interest

Linked savings accounts often pay interest for the period funds are held.

---

4. Wider lender access compared with some guarantor models

Springboard-style products are straightforward and do not require family members to provide income evidence or affordability assessments in the same way as guarantor mortgages.

---

5. Encourages disciplined ownership

The buyer immediately builds equity and owns 100% of the home.

---

Risks and Considerations for Family Supporters

While the arrangements can be beneficial, supporters should understand the implications.

1. Funds are locked in for several years

Supporters should only use savings that won’t be needed in the short term.

---

2. Risk of reduced or delayed return

If the buyer misses payments:

• The savings may be held for longer
• Some funds could potentially be used to cover losses

---

3. No access to the property

Supporters do not gain ownership rights and are not entitled to part of the property value.

---

4. Potential tax implications on interest earned

Interest earned on the savings may be taxable.

---

How Lenders Assess a Family Springboard Mortgage Application

Lenders evaluate both the buyer and the family member.

For the buyer:

• Income and affordability
• Credit history
• Bank conduct (last 3–6 months)
• Employment type and stability
• Credit utilisation and recent searches

Springboard support does not replace affordability checks.

---

For the family helper:

• Identity and residency checks
• Proof of savings
• Source of funds
• Verification that they understand the risk

Most lenders do not assess the helper’s income, unless the product specifically requires a guarantor feature.

---

Property Types Usually Accepted

Most springboard mortgages allow:

• Standard residential houses
• Standard construction flats
• New-builds (with lender-specific deposit rules)

Some may restrict:

• Non-standard construction
• High-rise flats
• Shared ownership
• Buy-to-let

The buyer must plan to live in the property.

---

Example: How a Springboard Mortgage Works in Practice

Property price: £250,000
Buyer deposit: £0
Family support: £25,000 placed in linked savings account (10%)

Outcome:

• Buyer secures a 100% mortgage
• Family member earns interest on their blocked £25,000
• After 3–5 years, if payments were maintained, the £25,000 is returned

This structure can be more appealing than gifting £25,000 outright.

---

Alternatives to Family Springboard Mortgages

Depending on individual circumstances, other arrangements may be suitable.

1. Guarantor mortgages

Parents guarantee part of the borrowing using income or assets.

---

2. Joint borrower, sole proprietor (JBSP)

Parents go on the mortgage but not the deeds.

---

3. Gifted deposit

A straightforward deposit gift with no repayment expected.

---

4. Family offset mortgages

Family savings reduce the interest charged on the mortgage.

---

5. Help to Buy ISA or Lifetime ISA

Government-backed schemes offering deposit bonuses.

---

How to Prepare for a Family Springboard Mortgage Application

(General Information Only)

1. Check your credit files

Ensure your information is accurate and up to date across Experian, Equifax and TransUnion.

---

2. Review your bank statements

Avoid:

• Unarranged overdrafts
• Returned payments
• Large unplanned spending spikes

---

3. Reduce credit utilisation

Lower utilisation supports stronger lender assessments.

---

4. Keep recent financial behaviour stable

Most lenders prioritise the last 6–12 months.

---

5. Ensure family savings are accessible and documented

Lenders need proof of funds and source verification.

---

6. Discuss the commitment openly

Both parties must understand the risks and lock-in period.

---

Summary

Family springboard mortgages offer a practical way for parents to help first-time buyers without gifting a deposit. They allow buyers to access low or no-deposit mortgages while enabling family supporters to retain ownership of their savings.

These products work well when:

• Buyers have strong income but limited savings
• Parents want to support without gifting capital
• Long-term financial stability is prioritised

With clear expectations and careful preparation, they can be an effective route to home purchase for many families.

This guide provides general information only. For personalised support, regulated mortgage advice is required.