For first-time buyers looking to step onto the property ladder, rising house prices and stricter lending criteria can pose significant challenges. However, many aspiring homeowners are turning to their parents or family members for financial assistance through joint mortgages or guarantor mortgages, affectionately referred to as the “Bank of Mum and Dad.”

In this extensive article, we will explore the ins and outs of getting a mortgage with Mum and Dad, discussing the various options, implications, and considerations involved.

Damian Youell

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Understanding Joint Mortgages and the Bank of Mum and Dad

The Bank of Mum and Dad has become an increasingly common means for first-time buyers to secure a mortgage. Joint mortgages with parents or family members involve combining incomes and resources to increase the borrowing capacity and improve affordability calculations. This approach allows aspiring homeowners to overcome hurdles such as saving for a large deposit or meeting strict affordability criteria.

Benefits of Joint Mortgages

There are several advantages to obtaining a joint mortgage with Mum and Dad:

  1. Access to a larger mortgage: Combining incomes increases the overall borrowing capacity, enabling first-time buyers to afford properties that might otherwise be out of reach.
  2. Favourable mortgage terms: The involvement of parents as guarantors or joint borrowers can lead to more favourable mortgage rates and terms, as lenders perceive the additional financial support as mitigating risk.
  3. Lower deposit requirements: Joint mortgages with parents often allow for lower deposit amounts, making it easier for first-time buyers to accumulate the necessary funds.

Types of Joint Mortgages

When considering a joint mortgage with parents, several options are available:

  1. Guarantor mortgages: In this arrangement, parents act as guarantors, providing additional security for the loan. If the borrower defaults, the guarantor agrees to cover the mortgage payments.
  2. Joint borrower, sole proprietor mortgages: This type of mortgage allows parents to be joint borrowers on the loan while not having any ownership stake in the property. This approach can improve affordability calculations without complicating property ownership.
  3. Family deposit mortgages: Some lenders offer specific mortgage products designed for families, allowing parents to deposit money into a savings account linked to the mortgage. This serves as additional security and can lead to better mortgage terms.

Considerations and Implications

When entering into a joint mortgage with parents or family members, it is important to consider the following:

  1. Legal and financial advice: Seeking legal and financial advice is crucial to ensure that all parties understand the implications and obligations associated with the mortgage agreement.
  2. Potential inheritance tax implications: Parents gifting money for the deposit should consider the potential inheritance tax implications. Tax-free gifts are subject to an annual allowance, and exceeding this threshold may trigger inheritance tax.
  3. Co-borrower responsibilities: Co-borrowers must understand their responsibilities and the potential risks associated with the mortgage. Defaulting on mortgage payments could result in legal claims or damage to credit history for all parties involved.
  4. Financial assistance transparency: Lenders may require evidence of the gifted money and request bank statements to ensure compliance with anti-money laundering checks.

Finding the Right Mortgage and Mortgage Broker

Finding the right mortgage and mortgage broker is essential when getting a joint mortgage with parents. Mortgage brokers specialize in navigating the complex mortgage market, assessing affordability, and identifying suitable mortgage products. They can provide expert advice tailored to your specific circumstances, ensuring you make informed decisions.

Mortgage lenders vary in their offerings and criteria, so it is essential to research different providers and compare mortgage products. Some of the biggest mortgage lenders in the UK include Lloyds Bank, Barclays, and Bank of England.

Other Considerations and Practical Steps

In addition to securing a mortgage, there are several practical steps to consider:

  1. Property deeds and ownership: Ensure that the property deeds accurately reflect the ownership arrangement and any legal agreements between the parties involved.
  2. Stamp duty surcharge: Be aware of any additional stamp duty charges that may apply, particularly if parents already own an additional property.
  3. Additional financial responsibilities: Consider the ongoing financial responsibilities associated with homeownership, such as household bills, maintenance costs, and mortgage repayments.
  4. Credit history and affordability checks: Keep in mind that lenders will assess the credit history and affordability of all borrowers, including parents.


Getting a mortgage with Mum and Dad can be an attractive option for first-time buyers looking to step onto the property ladder. Joint mortgages or guarantor mortgages can provide financial assistance, increase borrowing capacity, and improve affordability calculations. However, it is crucial to carefully consider the legal and financial implications, seek appropriate advice, and find the right mortgage and mortgage broker. With thorough research, expert guidance, and transparent communication among all parties involved, aspiring homeowners can navigate the process successfully and turn their property dreams into reality with the support of the Bank of Mum and Dad.

About The Author

mortgage broker damian youell

See some of Damian’s client reviews below

Damian is an experienced mortgage broker, founder of 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 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.