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Family Mortgage up to 100% LTV

ended 11. February 2026

The Family Building Society has just announced the re-launch of its enhanced Family Mortgage, now available at up to 100% LTV, which is designed to support first time buyers and home movers with the assistance of their family. Key points below. Thoughts ASAP please as writing story now.

  • No application or product fees
  • Minimum LTV 80%
  • Minimum Loan Size: £96,000
  • Maximum Loan Size: £750,000
  • Up to 5.33x LTI
  • Available for purchase applications only
  • Initial deposit from borrowers is optional, but not required
  • The value of the additional security, plus any initial deposit, must equal 20% of the property value
  • Up to a 40 year mortgage term to support affordability.

 

The Family members have the flexibility to provide security for a family member's mortgage in one of two ways (or a combination of both) provided the total security, plus any initial deposit, adds up to 20% of the value of the property the borrower is buying.

Family members can:

  • Place their savings into our Family Security savings account, which earns interest
  • Allow the Family Building Society to take a Collateral Charge over their property for the amount needed to make up the 20%.

The security supports the mortgage until the end of its fixed rate and is then released (subject to conditions).

Support can come from parents, grandparents or other family members without the need to provide a gifted deposit.

Our Family Mortgage repayment calculator can help you calculate the security your client will need and what their monthly repayments could be.

3 responses from the Newspage community

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Editor
Michelle Lawson
Director at Lawson Financial
A great offering from Family Building Society for parents who are equity rich and cash poor. This enables them to help their children get on the ladder without parting with savings, investments and/or fluid cash. This also mitigates any tax liability that may arise from gifting deposits.
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Editor
Justin Moy
Managing Director at EHF Mortgages
Family BS join a few mortgage lenders offering such schemes, such as Barclays, Halifax, Lloyds Bank and The Tipton BS, to name a few. Ideal for those with little or no cash deposit, allowing the spare equity in a parent's home to help cover the deposit and providing the option to use a bit of cash as an extra option. The mortgage still needs to be affordable each month, and rates will be higher than average, but these 100% (or near 100%) schemes are a very useful opportunity for First Time Buyers in partiuclar where saving the deposit is hard, but payments are affordable.
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Jonathan Alvarez Herrera
Mortgage Consultant at Ayla Mortgages
The Family Building Society’s enhanced Family Mortgage is a welcome development, offering a genuine route to home ownership for first-time buyers and movers who may struggle to raise a deposit. While marketed as up to 100% LTV, it’s important to note this is not risk-free lending – the family must still provide the equivalent of 20% support via savings, a collateral charge over property, or a combination of both.

From a later life lending perspective, this could appeal strongly to parents and grandparents who are asset-rich but don’t want to gift cash outright, particularly where savings are needed for retirement resilience. The fact the security is typically only required until the end of the fixed rate is also a major advantage versus longer-term guarantor arrangements.

However, families should take advice before committing, as placing a charge on property could impact future plans such as downsizing, equity release or funding later life care.