Family Deposit Mortgages

How does the Family Deposit Mortgage work?

The Family Deposit Mortgage has been designed for those looking to help a family member buy a home of their own, or move up the property ladder.

We understand that you’ll have clients who want to support their family, which is why we’re committed to helping you help them.

So, your clients can now access preferential rates if they’re remortgaging with capital raising to help a family member who is also taking a Nationwide mortgage.

Check our Family Deposit Mortgages terms and conditions.

See our definitions of a family member, helper and buyer.

Our product range

Our Family Deposit Mortgage range is available for applications up to 80% LTV. The range includes 2 and 5 year fixed rates or a 2-year tracker, all with £0 and £999 product fee options.

Search our Family Deposit Mortgage product range

And our standard remortgage product features still apply:

How to submit a Family Deposit Mortgage application

Family Deposit Mortgage applications can be submitted in NFI Online and MTE.

Decision in Principle

The Buyer must have received a DIP accept before the Helper’s Full Mortgage Application (FMA) is submitted

  • The Buyer’s DIP reference should be provided to the Intermediary who must input the to the additional information section of the 'helper's application. The note referencing the valid DIP must mention the Family Deposit Mortgage product e.g; "FDM buyers DIP ‐ Mxxxxx.
  • The transactions don’t need to be simultaneous, either the Helper or Buyer can carry out their DIP first.
  • If the Helper is unsure of the legal and tax implications of this transaction, you must inform them that they should consider independent legal advice.
Reason for additional borrowing

When completing the 'Purpose of additional borrowing' section for a Family Deposit Mortgage you must choose ‘Other Personal Consumption’.

The entire additional borrowing funds must be used as a gifted deposit towards a family member’s Nationwide mortgage. A Family Deposit Mortgage can’t be used where the additional borrowing has multiple purposes eg, if the customer wants to fund home improvements as well as a gifted deposit. In these cases you should choose a product from the standard range.

When the Buyer’s purchase falls through

There may be times when the Buyers application doesn’t progress, but the Helper’s application has completed. The Helper will then no longer need the additional funds and will want to return them to Nationwide.

They can return additional funds without incurring an Early Repayment Charge (ERC), as follows:

  • If part of the funds released are returned within 90 days of being withdrawn, then these can be returned ERC free.
  • This won’t affect the overpayment allowance within the first year.
Pipeline
There is no pipeline for Family Deposit Mortgage applications. Where a client has applied for a remortgage with capital raising before 22 March 2017 and now wishes to take a Family Deposit Mortgage, a new application must be submitted. This will mean that a new credit score and affordability assessment will be carried out, and your client may have to provide proofs again.

If you have any questions read our FAQs about Family Deposit Mortgages.