FAMILY MORTGAGES

Lots of mortgage lenders offer special family mortgages. There are usually two types.

If grandparents have cash savings, they can put a lump sum down in place of a deposit, to secure the mortgage. Grandchildren then make the regular monthly mortgage payments and – providing these are up to date – at a fixed point further down the line, grandparents get their savings back plus some interest.

With other schemes like the one from Nationwide below, grandparents can borrow against the equity in their property to fund a deposit for grandchildren.

Here’s a rundown of how some of these family mortgage deals work.

HALIFAX BOOST

Borrowers don’t need a deposit, as parents or grandparents put down 10% of the property purchase price in a Family Boost Fixed Savings account.

It’s a 3-year fixed rate account, and providing mortgage payments are up to date, grandparents get their savings back, plus 2.5% interest, after three years.

BARCLAYS SPRINGBOARD

Zero deposit for homebuyers here as family put 10% of the property price into a Helpful Start account.

With this one the money stays here for five years, and if the mortgage is up to date it’s repaid with interest, currently 1.6% a year.

NATIONWIDE FAMILY DEPOSIT MORTGAGES

With this one, rather than stumping up cash savings, grandparents (or parents) can borrow against the value of their home to “gift” a deposit for grandchildren. This can be split between several recipients.