Gifted deposit

First of all, your parents can offer to help with your deposit, which they can gift to you as part of the mortgage process. The lenders will usually require them to sign a gifted deposit letter.

Guarantor or family offset mortgage

In some cases, they can actually include their income as part of the application, which is commonly described as a guarantor mortgage. Alternatively, some lenders will consider those with parents who are prepared to act as guarantors for the debt. For example, they may use their home as collateral. However, in this scenario, they would need to have a decent chunk of equity in their own property to be able to provide this; 25 years is a standard minimum requirement on which the lender will put a charge. 

The family offset mortgage is where a parent or a close family member put their savings in an account linked to the mortgage. 

If you would like to explore the possibility of organising your mortgage in this way, it is best to discuss your options with a specialist; unfortunately we won't be able to advise.

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