Buying a home is one of life’s biggest milestones. But getting on or moving up the property ladder isn’t always straightforward. Rising house prices, changing circumstances, or simply limited income, can make securing a mortgage feel tricky.
The good news is you don’t have to go it alone. Getting a mortgage with one or more family members is an increasingly popular way for people to buy a home. You may be a first time buyer getting help from parents, or an older family member needing support from your children.
What does getting a mortgage with a family member mean?
When we talk about getting a mortgage with a family member, there are a few different options available. The most traditional route is a joint mortgage. This is where everyone named on the mortgage is named on the property deeds and shares legal ownership.
However, there’s another option that’s also proving useful for families: Joint Borrower Sole Proprietor (JBSP) mortgages. With a JBSP mortgage, up to four people from two households can be named on the mortgage, but only one or two people (usually the occupants) are named on the property deeds. This means family members can help with affordability without becoming legal owners of the property.
This arrangement can work both ways. Perhaps you’re a parent wanting to help your child onto the property ladder. Or maybe you’re supporting a parent who’s experienced a change in circumstances. At Suffolk Building Society, we recognise that family support comes in many forms. Therefore, we take a flexible approach and assess each family’s situation individually.
Can I get a mortgage with my parents?
Absolutely. Getting a mortgage with your parents is one of the most common forms of family-assisted home buying. First time buyers struggling to meet affordability checks on their own often turn to the ‘bank of mum and dad’.
Your parents can join you on a mortgage application, combining their income with yours to boost your borrowing capacity. This is helpful in areas where property prices have risen well above average earnings.
With a JBSP mortgage, your parents can help you afford a home, while you remain the sole legal owner. This means you can retain benefits like first time buyer stamp duty relief, on properties up to £300,000 (see gov.uk as thresholds are subject to change). Your parents, meanwhile, can avoid complications like additional stamp duty charges on second homes or capital gains tax that might apply if they were named on the deeds.
JBSP mortgages allow families to support each other in a way that’s tailored to their situation. Your parent doesn’t need to contribute to the deposit or have any claim on the property. They’re simply helping you meet the lender’s affordability requirements.
Can I get a mortgage with my daughter or son?
It’s not always the younger generation that needs help. Life throws curveballs, and sometimes it’s parents who benefit from their children’s support.
Perhaps you’re going through a divorce and need to buy out your ex-spouse. Maybe you’re approaching retirement and experiencing a drop in income. Or you may be moving to a more expensive part of the country to be near grandchildren. With a JBSP mortgage, your adult children can be added to your mortgage to help you stay in your home or move to something more suitable.
This type of arrangement can provide peace of mind for everyone involved. You maintain ownership and control of your home, while your children can help ensure you’re financially secure and able to stay where you want to be.
Can I get a mortgage with my brother or sister?
Parents and children are most likely to support each other. However, JBSP mortgages aren’t limited to these relationships. At Suffolk Building Society, we accept other immediate family members as well. This can include grandparents and siblings and even extends to stepfamily and adoptive family.
Getting a mortgage with your sibling might make sense if you’re both at similar life stages and want to pool your resources. Or perhaps you’re caring for an ageing parent together. Whatever your circumstances, there are options available.
Important considerations before applying
Before entering into any mortgage arrangement with a family member, you should all understand both the benefits and the potential risks.
All borrowers named on the mortgage are jointly and severally liable for the repayments. This means if the proprietor struggles to make payments, the supporting borrowers must cover them. The mortgage will also appear on all borrowers’ credit files. This could affect their ability to take out other finance in the future.
For those who aren’t named on the property deeds, it’s important to recognise that you won’t benefit from any increase in the property’s value. You also won’t have any legal entitlement to the property.
Taking the next step
Getting a mortgage with a family member can open doors that might otherwise remain closed.
We specialise in understanding complex family situations and finding mortgage solutions that work. You can even still get a JBSP mortgage if you’ve had a gifted deposit from a family member (although in this scenario the supporting borrower wouldn’t be able to live in the property).
Why not get started today with our decision in principle? It only takes around 10 minutes and will give you an idea of how much you could borrow together.
