Buying your first home can feel like a huge challenge. Many young people find it difficult to save enough for a deposit or get approved for a mortgage on their own. If you are struggling to get on the property ladder, you’re not alone — and help from your parents might be an option worth exploring.
In this article, I’ll explain the different ways your parents can help you buy a house or get a mortgage. Whether they have some savings, own property, or simply want to support you, there are several options available. Understanding these can make the process clearer and easier for you.
Why Many First-Time Buyers Need Help
Before we look at the ways parents can help, it’s important to understand why many young people need extra support. House prices have been rising steadily, often by 5-10% a year. The average home in the UK now costs over £260,000, which is a big amount to save for if you’re just starting out.
Often, it’s not that you couldn’t afford the monthly mortgage payments. The biggest barrier is saving for a big enough deposit. If you’re renting while saving, that means paying high rent each month with less left over to save. On top of that, many young people are also paying off student loans or dealing with uncertain job situations.
Compared to previous generations, it’s harder to save quickly. Meanwhile, your parents may have bought their homes decades ago when prices were much lower. They might have built up equity in their property and have more financial flexibility now.
With this background, let’s see how your parents can help you buy your first home.
1. Income Boost or Guarantor Mortgage
One of the most popular ways parents can help you get a mortgage is by acting as a guarantor or providing an income boost.
What is this?
When your parents act as guarantors, they promise the mortgage lender that if you cannot keep up with the mortgage repayments, they will cover the missed payments. This promise usually increases the total income considered by the lender when deciding how much money they can lend you.
If you’re self-employed, on parental leave, a single parent, or simply don’t earn enough on your own, this can be a game-changer. It means you can get a bigger mortgage and afford a better home.
What do you need to know?
- Your parents must understand they will be legally responsible for your mortgage if you cannot pay. This is a serious commitment.
- They will need to get independent legal advice to ensure they understand the risks.
- This option can help you get on the ladder sooner but make sure you are comfortable with the arrangement.
2. Deposit Boost: Unlocking Equity from Parents’ Property
If your parents own their own home, they might be able to help by using some of the money tied up in their property. This is often called a deposit boost.
How does this work?
Your parents can unlock equity — the value of their home minus any mortgage left to pay — and gift or loan that money to you for your house deposit. A bigger deposit often means you can access a mortgage with a lower interest rate and better terms.
Why is this useful?
- A larger deposit lowers your monthly mortgage repayments, making the home more affordable.
- It might allow you to buy a home with extra features like an additional bedroom or a garden.
- Your parents don’t have to give you the money outright; they can secure it in ways that protect their interests.
3. Savings as Security or Family Springboard Mortgage
If your parents have cash savings but don’t want to give them as a gift, they can use something called a Savings as Security mortgage (sometimes called a Family Springboard mortgage).
How does this help you?
- Your parents put a sum, usually 10% of the property value, into a special savings account held by the mortgage lender.
- This acts as a kind of security or guarantee, meaning you don’t need a traditional deposit.
- As long as you make your mortgage payments on time, your parents get their money back at the end of the agreed period, along with any interest.
- This helps you get on the property ladder with little or no money saved yourself.
Things to keep in mind
- Your parents’ savings will be locked away for a fixed term, often a few years.
- The money is protected, but it cannot be accessed by your parents during this period.
- This scheme can be very useful if you haven’t yet saved a big deposit but want to buy soon.
4. Parents Paying the Mortgage
Sometimes, parents help by directly paying off some of the mortgage themselves. This might be as a one-off lump sum or as ongoing monthly payments.
How can this work?
- Your parents could gift you a lump sum of money to reduce the size of your mortgage, lowering monthly repayments.
- Alternatively, they might contribute monthly payments alongside you. In some cases, they can be added to the mortgage deed to formalise this.
- This option is flexible and can help if you’re struggling with repayments or want to reduce your mortgage term.
5. Joint Mortgage or Joint Ownership
If your parents want to take a more active role, you can get a joint mortgage with them.
What does this mean?
- Both you and your parents apply for the mortgage together and are responsible for the repayments.
- You also become co-owners of the property.
- Ownership can be split equally (50/50) or in different shares based on what each person contributed.
Joint ownership types
- Joint tenants: Both owners have equal shares and rights to the whole property. If one dies, the other automatically inherits their share.
- Tenants in common: Each owner has a specific share in the property, which can be different sizes and passed on separately in a will.
Advantages and considerations
- This can help you qualify for a bigger mortgage.
- Your parents’ credit history and income can improve the application.
- However, your parents will be legally tied to the mortgage, and any disputes about ownership may be complicated.
- It’s important to have a Declaration of Trust or legal agreement setting out ownership shares and responsibilities.
6. Loan from Parents
Instead of gifting money, parents can lend you the deposit or part of the purchase price.
Things to know about loans from parents
- The loan should be documented with clear terms: repayment schedule, interest (if any), and what happens if you sell the property.
- This helps avoid misunderstandings later and protects both parties.
- The loan might affect how much mortgage you can get because lenders will count it as debt.
- If interest is charged, parents may need to pay income tax on the interest earned.
7. Using Property as Security for Your Mortgage
Another way parents can help is by using their property as security for your mortgage. This means your lender will accept your parents’ home as extra security, reducing the risk for the lender.
What does this involve?
- Your parents’ property is used as additional collateral.
- This might enable you to get a 100% mortgage (meaning no deposit required).
- If you default, the lender could pursue your parents’ property to recover the loan.
Risks and advice
- This is a serious step because your parents risk losing their home if you cannot keep up repayments.
- They should get independent legal advice and fully understand the risks.
8. Legal and Practical Points to Consider
If your parents are helping with a house purchase, there are some legal and practical things to keep in mind to avoid problems later.
Gifts vs Loans
- If money is gifted, your parents no longer have any legal claim on it or the property.
- If the money is a loan, there should be a written agreement to make this clear.
- Lenders will usually ask for proof the money is a gift, not a loan, when processing your mortgage.
Inform your solicitor and lender
- Tell your conveyancer (the solicitor handling your purchase) if your deposit is a gift or loan from family.
- Provide evidence to your mortgage lender about the source of funds.
- This helps avoid delays and problems in your mortgage approval.
Protecting your interests
- If you buy with a partner or others, consider a deed of trust. This legal document records who owns what share of the property and protects financial contributions.
- A deed of trust can prevent disputes if relationships end or if one party wants to sell.
Updating wills
- After gifting large sums for a property purchase, it’s a good idea for both you and your parents to review or update your wills.
- Parents may want to balance the gift given to one child with inheritance left to others.
- You might want to include clauses so the gifted money returns to your parents if you die before them.
Independent legal advice
- Parents who act as guarantors or use their property as security must get independent legal advice.
- This ensures they understand the risks and responsibilities involved.
Final Thoughts
Getting on the property ladder is one of the biggest financial steps you’ll take. It can be challenging, but there are many ways your parents can help — from gifting money to acting as guarantors, contributing to deposits, or taking joint ownership.
If you’re thinking about accepting help, open and honest conversations with your family are important. Understanding the options, legal implications, and risks can help you make the best decision for everyone involved.
Remember, it’s perfectly normal to get support from family when buying your first home. Millions of first-time buyers in the UK do the same. With the right knowledge and advice, you can make your dream of owning a home a reality.
