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A family boost mortgage lets first-time buyers get onto the property ladder without a deposit of their own, by allowing a family member to put up savings as security instead. The family member’s money is held in a linked savings account for a set period rather than given away, and it is returned to them with interest at the end of the term, provided mortgage repayments have been kept up.
This guide explains how a family boost mortgage works in 2026, who it suits, the criteria and restrictions to be aware of, and how it compares with other family-assisted options.
What is a family boost mortgage?
A family boost mortgage is a family-assisted product aimed at buyers who have limited or no deposit but can afford the monthly repayments. Instead of the buyer providing a cash deposit, a family member deposits a sum, commonly equal to around ten per cent of the property price, into a savings account linked to the mortgage. That savings balance acts as security for the lender. It is a genuine loan in the buyer’s name, not a gift, and the family member’s capital is ring-fenced rather than handed over. This type of product is offered by a small number of UK lenders, including Halifax.
How does a family boost mortgage work?
In most cases the family member places their savings into a fixed-term account tied to the mortgage, typically for around three years. The buyer takes out a repayment mortgage and makes the monthly payments as normal. At the end of the fixed term, provided the repayments have been made on time, the family member gets their original savings back, usually with interest added. The buyer then continues on a standard mortgage, often reviewing their rate at that point. Because the borrowing is assessed on the buyer’s own affordability, the family member is helping with the deposit rather than becoming responsible for the repayments.
Who is a family boost mortgage for?
It is designed mainly for first-time buyers who can comfortably meet monthly payments but have struggled to save a deposit, often because of rent and living costs. It can also suit buyers whose family want to help without simply giving money away, since the savings are returned. Parents, grandparents, or other close family who have savings they are willing to lock away for the term are the usual supporters.
Eligibility criteria and restrictions
Each lender sets its own rules, but there are common restrictions to be aware of. Family boost products often cannot be used to buy a new build property, or to purchase through schemes such as shared ownershipA scheme where a borrower purchases a share of a property an... More, shared equityThe difference between the value of the property and the amo... More, or Right to BuyThe right of council tenants to purchase their council. More, and they are usually not available on an interest-only basis. The buyer must still pass a full affordability assessment and credit checkA check of a borrower's credit history, which is used by mor... More, and the supporting family member must have the required savings available to lock away for the term. Because availability and criteria change, it is worth checking current options across lenders rather than assuming one product will fit.
Family boost vs other family-assisted options
| Option | How the family helps | Do they get their money back? |
|---|---|---|
| Family boost mortgage | Savings placed as security in a linked account | Yes, returned with interest at the end of the term if repayments are met |
| Deposit gift | Cash gifted towards the deposit | No, it is a gift |
| Guarantor mortgageA guarantor mortgage is a home loan where a family member or... More | Family guarantees the mortgage against income or property | No money is placed, but they are liable if payments are missed |
| Joint borrower sole proprietorA mortgage where two or more borrowers are jointly responsib... More | Family income is added to the application without being on the deedsLegal documents that prove ownership of a property. More | No money is placed, but they share responsibility for repayments |
Advantages and things to consider
The main advantage is that a buyer can purchase without their own deposit while the family keeps ownership of their money. For the family, it can be a lower-risk way to help than gifting a large sum. The points to consider are that the family’s savings are locked away for the fixed term and are at risk if repayments are missed, the range of eligible properties can be narrower, and the buyer still needs to pass affordability checks. Weighing these against other family-assisted routes is where independent advice helps.
Frequently asked questions
Do I need a deposit for a family boost mortgage? Not from your own funds in most cases. The family member’s savings act as the security instead, though you must still pass the lender’s affordability and credit checks.
Does the family member get their money back? Yes. The savings are held for the fixed term and returned, usually with interest, provided the mortgage repayments have been kept up throughout.
Can I use a family boost mortgage on a new build? Often not. Many lenders exclude new builds and scheme purchases such as shared ownership or Right to Buy, so check the specific product’s criteria.
Is a family boost mortgage the same as a guarantorA person who guarantees to repay a mortgage if the borrower ... More mortgage? No. A guarantor backs the mortgage against income or property, while a family boost uses savings placed as security that are later returned.
To find out whether a family boost mortgage suits your situation, you can speak to our team via the meet our team page or explore more guides in our mortgage, property and money advice hub.
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Your home may be repossessed if you do not keep up repayments on your mortgage. Needing Advice is an independent, FCA-regulated whole of market mortgage broker. This article is general information only and does not constitute financial or mortgage advice. Availability and lender criteria vary and can change, and any arrangement depends on your individual circumstances. There is no obligation, and we recommend seeking personalised advice before making any decision.