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UK Springboard Mortgages Explained

When it comes to buying a home, one of the biggest hurdles for many is saving for a substantial deposit. A Springboard Mortgage offers a solution to this challenge, particularly for first-time buyers or those struggling to step onto the property ladder. This mortgage product allows family members to help out without directly giving away their savings.

How the Scheme Works

The Springboard Mortgage works by allowing a family member to deposit savings equivalent to 10% of the property's purchase price into a special savings account held with the mortgage lender. This money is then held as security against the mortgage for a fixed period, usually around three years. During this time, the buyer can purchase their home without the need for a traditional deposit.

The family member earns interest on their savings, although the rate may be lower than some other savings products because the funds are helping secure a mortgage. After the agreed period, provided the homeowner has kept up with their mortgage payments, the family member gets their savings back in full, plus any interest accrued.

west London home

Eligibility Criteria

To qualify for a Springboard Mortgage, there are several criteria that both the homebuyer and the family member must meet.

Homebuyer Eligibility:
  • Must be at least 18 years old.

  • Should be a UK resident.

  • Typically requires a good credit history.

  • Must be purchasing a property to live in, not for investment purposes.

Property Eligibility:
  • The property should be in the UK.

  • There may be a maximum property value, which varies by lender.

Family Member Eligibility:
  • Must have savings equivalent to 10% of the property’s purchase price.

  • Willing to lock these savings away for the fixed period.

Income Requirements:
  • The homebuyer's income will be assessed to ensure they can afford the mortgage repayments.

Loan-to-Value (LTV):
  • The mortgage typically offers a high LTV, often up to 95%, meaning the buyer only needs a small or in some cases no deposit.

It's important to note that not all lenders offer Springboard Mortgages, and terms can vary between those that do. Potential borrowers should research and compare different lenders' offerings via professional financial advice to ensure this type of mortgage suits their circumstances.

In conclusion, the UK Springboard Mortgage is a creative way for families to support each other in purchasing a home without the need for a large upfront cash gift. It provides a pathway for homebuyers who might otherwise be unable to afford a deposit while offering a safety net for family members through the return of their savings plus interest.

As with any financial product, understanding the terms and conditions is crucial so contact Providence Global Finance today for assistance in navigating your journey onto the property ladder.


Approved by The Openwork Partnership on 14/03/2024.

Providence Global Finance is a trading name of Just Mortgages Direct Limited which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited, which is authorised and regulated by the Financial Conduct Authority.​


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