About The Author

mortgage broker damian youell

See some of Damian’s client reviews below

Damian is an experienced mortgage broker, founder of NeedingAdvice.co.uk Ltd and company director. With over a decade working as a mortgage broker he has a strong understanding of hard to place mortgage cases. With hundreds of 5 star client reviews. hundreds of repeat clients his work speaks for himself.

He started NeedingAdvice.co.uk as a one man band with the philosophy of putting clients needs ahead of his own. This ethos of offering excellent customer service has helped the business grow over the years. He gets satisfaction on getting cases pushed through to offer stage where other mortgage broker and companies have failed.

Throughout his time as an adviser he has carved out a niche area of advice helping clients with their business protection requirements too. Having helped hundreds of client with Relevant Life Policies, Shareholder Protection Insurance, Keyperson Policies and other important protection requirements of large to small businesses.

At home he is a family man and likes to spend his time with his four children and wife Lisa. He enjoys going on holidays spending time with friends and going for walks.

Mortgage for Dependent Relative

Each month, we assist numerous clients who are looking for a mortgage for a dependent relative. This need arises across various scenarios, prominently featuring older parents nearing the end of their interest-only mortgage terms.

Dependent relative mortgages often involve complexities such as insufficient annual income for the older relative to secure a new mortgage as their original term concludes independently. This could force them to sell their home and transition into rented accommodation, a significant upheaval for anyone in their later years. Understanding how much a dependent affects a mortgage is crucial, particularly when calculating the financial feasibility of retaining family homes within the family.

For many clients, solutions involve structuring a dependant relative mortgage with NatWest or similar institutions where the borrowing criteria may accommodate lower income levels when supported by a family member. In these instances, a younger family member might use their income alone or jointly to secure enough financing to settle the existing balance on the parent’s home. This strategy prevents the sale of the family home and ensures that the older family member’s living situation remains stable and secure.

Mortgage Success Reviews For Concessionary Purchase

Dependent Relative Concessionary Purchase

In situations such as the one explained above, where the parent or dependent relative will remain in the property and continue to live in the property, the majority of lenders will not be happy. Even if the person taking the mortgage meets the lender’s affordability model, the lender could have issues in the future if they are forced to repossess the property. For a property similar to this one, we do have mortgage lenders who accept your mortgage application depending on your loan affordability. Also, note that no personal deposit will be required for a concessionary purchase. Instead, the parent or relative gifts the equity that is in the property to their son, daughter, etc and that is used instead of a personal deposit.

Affordability Calculations

Unlike a buy-to-let where borrowing is for business purposes, and borrowing is based mainly on rental income. A dependent relative mortgage needs to have sufficient income from either the sole or joint borrower. However, typically the applicants are younger than their older parents and the mortgage term can be extended allowing a bigger borrowing capacity. The longer maximum term can increase the maximum loan available. At the time of application, other financial burdens of the applicants have been taken into account. The monthly payment of their current mortgage and the applicant’s combined income including, any shift allowance and child dependents, will be assessed to work out minimum income requirements.

Affordability Calculations for Dependent Relative Mortgages

Securing a mortgage for a dependent relative differs significantly from other types of mortgages, such as buy-to-let, which are based primarily on potential rental income.

Here, the focus is on ensuring that the income from the primary or joint borrowers is sufficient to cover the mortgage requirements, particularly under the strain of additional dependents.

Applicants, often younger than their dependent relatives, might benefit from extended mortgage terms, which can significantly increase their borrowing capacity. During the application process, we comprehensively examine all financial obligations, including existing mortgages, shift allowances, and the impact of child dependents. These factors are critical in determining the minimum income requirements and addressing the question of how much a dependent affects a mortgage.

Qualifying Relationships for a Dependent Relative Mortgage

Understanding who qualifies for a dependent relative mortgage is crucial when considering the financing options for purchasing a home with family assistance. The eligibility largely depends on the source of the deposit and the nature of the purchase.

Non-concessionary Purchases

If the deposit comes from the applicant’s own savings, the scope of who can qualify as a ‘dependent relative’ broadens significantly. In these scenarios, many familial relationships are eligible, including cousins, uncles, aunts, grandparents, ex-partners, and civil partners. This flexibility allows for a more inclusive approach to securing a mortgage for a dependent relative.

Concessionary Purchases

Conversely, if the deposit is not from the applicant’s personal funds and the transaction is considered concessionary, the criteria for defining a dependent relative become more stringent. Typically, the relationship must be very close, such as a parent (mum or dad) or a child (son or daughter). These relationships reflect a higher level of trust and financial interdependence, which is critical in concessionary agreements where traditional deposits are waived in favour of equity gifted by the relative.

Understanding these distinctions is key to navigating the complexities of securing a dependent relative mortgage and ensuring that all parties meet the necessary criteria for a successful mortgage application.

If you are interested in a mortgage for a dependent relative, please feel free to contact a mortgage broker.

Can’t we just get a regulated buy to let for dependent relatives?

Instead of a conventional dependent relative mortgage where the maximum loan is not based on the rental income, you could apply for a regulated buy-to-let mortgage.

The issue is that even though these are labelled as buy-to-let, they are still assessed on income for affordability. The rates for these regulated buy-to-let mortgages are usually a lot higher than a typical residential mortgage. As annual income will be assessed anyway, we normally attempt to get a dependent relative mortgage agreed upon first, as this gives lower mortgage repayments. To work out whether to use a family buy to let mortgage providers or a mortgage for dependent relatives, it is recommended to seek professional advice by using an independent mortgage adviser. An experienced mortgage broker will have up-to-date knowledge of the market as an area of niche advice, and borrowing limits will vary massively between lenders.

What other factors are taken into account?

Along with annual income, existing outstanding mortgage balances or mortgage payments will be factored into the affordability calculation. There is more to working out what can be borrowed than just looking at individual income and the income multiple applicable. Personal loans and credit card commitments are also factored into the affordability assessment. The affordability figure is then worked out.

The information from credit reference agencies is also factored into the decision. Bad credit, adverse credit such as CCJs, Defaults, and Missed Payments will make getting a mortgage of this type much more difficult to get the mortgage application approved.

Damian Youell

Feel Free To Start WhatsApp Chat With Us...

How We Work

1: We contact you and take down your details, income outgoings, name, address etc.

2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

3: You upload the documents and information needed via our channel our online portal.

Feel Free to Contact Us

Which lenders are OK with dependent relative mortgages?


Yes. The applicants own mortgage/rent is taken into account for affordability

Yes The Cambridge will consider an application for dependent relatives. The case will be assessed on an affordability basis where the applicants will need to be able to proof affordability both for their current property and the security property in question.

Yes – Max 70% LTV

Acceptable, we do have second property specific products. Max 85% LTV on repayment or 70% interest only with option of further 5% on repayment being part and part. Please speak to your BDM to discuss affordability.

Yes, subject to max 85% LTV.

Yes. Max 90% LTV

This is acceptable subject to Max 75% LTV

Where a second property is purchased for a dependent relative the maximum LTV we will lend is 75%.
Two expenditure forms will be required for each property and must show all essential outgoings to cover each household.

Eligibility for Dependent Relative Mortgages

Understanding who is eligible for a dependent relative mortgage is crucial for families looking to assist a relative in securing or maintaining homeownership. This type of mortgage can provide vital financial support, but it comes with specific eligibility requirements that need to be clearly understood.

Who Qualifies for a Dependent Relative Mortgage?

A dependent relative mortgage is designed to help family members who cannot qualify for a mortgage on their own due to income, age, or health conditions. The typical qualifiers for this type of mortgage include parents, grandparents, or other close relatives who are financially dependent on the applicant. The applicant usually needs to prove a stable income and a close familial relationship to the dependent.

This mortgage type is particularly useful in situations where an older family member needs to secure housing but lacks the necessary income due to retirement or health issues. Younger family members can step in to support their application, ensuring that the dependent can continue living in their home or move into a new property that better suits their needs.

Concessionary Purchases Explained

Concessionary purchases, often a key component of dependent relative mortgages, involve buying a property from a family member under favorable conditions. Typically, this means the property is sold at below market value, or the equity is gifted as part of the purchase. This approach can significantly reduce the financial burden on the buyer, making homeownership more accessible.

In the context of dependent relative mortgages, concessionary purchases usually require that the buyer and the seller have a close family relationship. Lenders look favorably on these arrangements because they often involve a genuine intent to provide for a family member’s welfare rather than commercial gain. However, lenders also require clear documentation and legal arrangements to prevent future disputes and ensure that all parties understand their rights and obligations.

For families considering a concessionary purchase, it’s important to consult with financial advisers and mortgage specialists who understand the intricacies of these deals. They can help navigate the application process, deal with legal requirements, and find a lender that best suits the family’s needs and circumstances.

Next Steps

If you are considering a dependent relative mortgage or a concessionary purchase to assist a family member with homeownership, it’s essential to gather all necessary information and seek expert advice. Working with a financial adviser or mortgage specialist can help you understand the eligibility requirements, affordability calculations, and legal considerations involved in these transactions.


What mortgage options are available for families considering a dependent mortgage scheme?

Families looking into a dependent mortgage scheme can explore various mortgage types, such as fixed-rate mortgages, which offer stability in payments, variable-rate mortgages that may provide lower initial rates, and interest-only mortgages that reduce monthly outlays. Each type offers distinct advantages and considerations, especially useful on the mortgage journey for families managing residential property financing.

How do child tax credits and childcare costs influence mortgage affordability?

Child tax credits and childcare costs significantly impact mortgage affordability. Child tax credits can increase your disposable income, potentially improving your borrowing capacity. Conversely, high childcare costs reduce the amount of income available for mortgage repayments, which could limit the loan amount lenders are willing to offer. Mortgage lenders will assess all aspects of your income and outgoings, including these factors, during the mortgage application process.

Can having dependents affect your chances of obtaining a flexible mortgage?

Yes, having dependents can affect your chances of securing a flexible mortgage. Lenders consider additional dependents to be a factor in your overall financial responsibility, which can influence both the type of mortgage available to you and the terms attached to it. Engaging a trusted mortgage broker can help navigate these considerations, ensuring that you find a mortgage product that accommodates your family’s needs.

What are the implications of having dependents on your mortgage terms and repayment responsibilities?

Having dependents can affect the terms of your mortgage and your repayment responsibilities. Lenders might offer you a shorter mortgage term or a smaller loan amount due to the perceived higher risk of fluctuating expenses associated with dependents. This can affect the level of mortgage payments and require careful planning for future financial stability. It’s crucial to consult with a mortgage advisor to understand these implications fully.

How do additional income sources like child benefits impact your mortgage journey?

Additional income sources, such as child benefits, can positively impact your mortgage journey by enhancing your income profile. Lenders consider these income streams when calculating your mortgage affordability, which can increase the mortgage amount you qualify for or improve the terms offered. However, it’s important to declare all forms of income, including child benefits, during the loan application to ensure a smooth mortgage process.

Damian Youell

Feel Free To Start WhatsApp Chat With Us...

How We Work

1: We contact you and take down your details, income outgoings, name, address etc.

2: We will research the whole market and email you a detailed quote as well as a list of documents to proceed.

3: You upload the documents and information needed via our channel our online portal.

Feel Free to Contact Us