What is a Springboard Mortgage?

In this article, we will discuss the springboard mortgage or family deposit mortgages. Most of the enquiries, that we receive for springboard mortgages in the UK are from people who have a good credit history and they want to borrow money against their home as a loan against property. This is called “springboard” because it allows you to get a loan against your own home without having any equity in your house. The term springboard was first used by the banks when they were offering loans against properties with no down payment. Nowadays, these types of loans are also known as ‘family deposit mortgages.

The main advantage of using a springboard mortgage is that you can get a loan even if you don’t have any equity in your house (i.e. you do not need to put up any cash). You can use the equity in your house to pay off other debts such as car finance, student loans etc. If you have a bad credit history, then you may be able to apply for a conventional mortgage but you would have to provide some security on your house. However, if you have a good credit history, then you can easily qualify for a springboard mortgage. 

It isn’t easy to get on the property ladder but it has now become increasingly difficult with soaring property prices and stricter lending requirements. More and more people rely on help from family and close friends to get a mortgage loan and a springboard mortgage is a type of product which can help facilitate this. It is available to first-time buyers and existing homeowners. There are options from mortgage lenders in the market which require no deposit upfront.

These mortgages are not only for residential properties but also for buy-to-let mortgages. If you are interested in getting a regulated buy-to-let mortgage for a family mortgage, you can read it in our other blog.

Post Topics

What is Springboard Mortgage

How does springboard mortgages work?

How much deposit do you need?

More about springboard mortgages

Where can I get a springboard mortgage from?

Next steps


Damian Youell

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How does springboard mortgages work?

Springboard mortgage also known as family deposit mortgage, works in a similar way to guarantor mortgages. Essentially a family member would put a percentage of the property price into a savings account held with the lender for a specified period of time, usually being a few years. Interest is earned on the sum in the savings account.

After a few years, equity will have built up in the property from monthly mortgage payments and all of the money in the savings account is returned after the agreed period has ended, including the interest earned. It is not possible to access the money that is in the savings account before the agreed period has ended, even for emergencies.

All monthly mortgage repayments will be required to be paid on time as stipulated by the lender, just like any other type of mortgage. If payments are not met then the money in the savings account will be held until mortgage payments are up to date. If the situation worsens and the property is repossessed then the money in the savings account can be used to burden any losses to the lender. It is wise to think through if you can commit to the financial responsibility of repaying a mortgage loan.

How much deposit do you need?

Usually a deposit of 5% is favourable although it is possible to be accepted with 0% deposit, depending on borrower and how much is placed into the savings account for a springboard mortgage. Having 5% deposit will strengthen your application and may increase your chances of being accepted for a mortgage loan and possibly allow you to unlock better interest rates.


Property value = £250,000
Borrower has £0 deposit.
Family or close friend contributes 10% of the property value and puts £25,000 into a savings account with the lender.
Borrower makes monthly payments to repay the mortgage loan.
After a few years, the £25,000 including any interest earned will be returned to the family or friend.

More about springboard mortgages

• If you have bad credit, you may be able to get a springboard mortgage but this is be dependent on the lender.
• More than one person can assist with the springboard deposit by setting up separate savings account.
• You retain full ownership of the property.
• Some lenders may consider accepting benefit income although the amount may vary depending on the lender.

Where can I get a springboard mortgage from?

• Barclays Springboard Mortgage
• Halifax Springboard Mortgage
• Nationwide Family Deposit Mortgage
• Post Office Family Link Mortgage
• Family Building Society Family Mortgage
• And more

Next steps

You can find a few lenders on the market offering springboard mortgage products and there are increasingly more deals available but it is good to note that each lender has their own criteria and requirements and not all lenders and their products could be suitable for your individual needs and circumstances. Speaking with a mortgage advisor could help streamline your process so you don’t have to reach out to every lender, as a professional will be able to help direct you to deals most suitable for you.


FAQs- Springboard mortgages

What is a family springboard mortgage?

A springboard mortgage is a form of mortgage where one or more members of a household contribute towards the purchase of a property using a combination of their own funds and borrowed money. The amount contributed varies between lenders and some lenders offer a fixed rate while others offer variable rates. This means that the borrower pays back a certain amount each month over a set period of time. In return they receive a lump sum at the end of the term, which is usually around 80 – 90 per cent of the total cost of the home.

The advantage of this type of mortgage is that borrowers get to keep the majority of their original investment, plus earn interest on it. As a first time buyer, you can start your journey onto the property ladder with this mortgage. However, the downside is that they must pay back the full amount at the end of the contract, regardless of whether or not they still owe money on their existing mortgage.

Who can apply for a springboard mortgage?

Anyone who wants to buy a house can apply for a springboard mortgage. You don’t need to be a homeowner to take part in a springboard mortgage. Some people use them to build equity in their current home before selling it. Others use them to finance the down payment for their next move.

Is a springboard mortgage right for me?

It depends on your personal circumstances. A springboard mortgage is best suited to those looking to save for a deposit and gain an understanding of what it takes to borrow from a bank. If you already have a mortgage, then you should speak with your financial adviser about other options.

Can I afford a springboard mortgage?

It depends on your budget. While it might seem like a great idea to put down a large chunk of cash upfront, remember that if you go through with this plan, you will only be paying off your debt. At the same time, you won’t be building any equity in your home.

How does a Barclays family springboard mortgage work?

Barclays offers a range of family springboard mortgages, including:

Fixed Rate Family Springboard Mortgages – These loans are offered at competitive rates and provide a fixed monthly repayment. They also allow you to make extra repayments throughout the year.

Variable Rate Family Springboard Mortagess – These loans are offered with flexible terms and rates and may include a bonus feature such as shared equity.

What are the benefits of a family springboard mortgage?

There are many advantages to taking out a family springboard mortgage. Here are just a few:

• You can save up to £30,000 by making regular payments into your loan instead of putting down a big lump sum.

• It allows you to avoid having to sell your current home.

• When you decide to sell your home, you can do so without losing anything.

• You can benefit from tax relief on your savings.

Are family springboard mortgages good?

Yes! There are several reasons why these types of mortgages are popular among families. For example, if you want to build equity in your home but don’t have enough saved up, a family springboard mortgage could help you achieve your goal. Another reason is that they give you flexibility when it comes to buying your next home. By combining your borrowing needs with someone else’s, you can find a deal that suits both parties.

Can I get a family springboard mortgage with bad credit?

Yes, if you meet certain criteria. The most important thing is that you have a stable income. This means that you shouldn’t be relying on one source of income. Also, you should try to improve your credit rating over the years. If you’re struggling financially, you could consider applying for a debt consolidation loan. This way, you can combine all your debts into one manageable amount. If you have bad credit, the first thing you can do is contact a bad credit mortgage broker. 

Do I need to be a homeowner in order to get a family springboard loan?

No, not necessarily. However, there are some conditions that must be met. One of them is that you must own or rent the property that meets the lending requirements. In addition, your partner must either be a homeowner or have a rental property. Finally, you must have been living together for at least two years.

Can I use equity in a family home to get a mortgage?

Yes, you can use the equity in your existing home to secure a new mortgage. However, keep in mind that you will still need to pay back the original mortgage. To qualify for an equity release scheme, you will need to live in the house for at least five years.

What happens if my family springboard mortgage doesn’t work out?

If you choose to take out a family springboard loan, you will be responsible for repaying the money borrowed.