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Deposit Boost

Help your loved ones get on the ladder by unlocking money from your home.

Deposit Boost

Help your loved ones get a home of their own, without having to take money out from your savings or investments. By unlocking money from your property with a Deposit Boost, you can add to their current deposit, or help them create a house fund from scratch.

The team at Saga Mortgages, provided by Tembo, can walk you through the steps of setting up a Deposit Boost and help you work out if it’s the right option for you and your family. 

How does it work?

A Deposit Boost is a way for loved ones to help the next generation buy a home without becoming a guarantor. It works by using two separate mortgages; the first mortgage is taken out by you (the “Booster”) which is secured against your own property to release equity from your home. This is either as a Retirement Interest-Only mortgage, which will keep the monthly repayments more affordable, or a conventional remortgage.

The money released is then given by you to your loved one as a gifted deposit, which will be used when they arrange their own mortgage. With a larger deposit at their disposal, your loved ones can increase their buying budget and could secure lower interest rates.

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Knowing your mortgage options

Saga Mortgages can help you understand and navigate your mortgage options.

Finding out which products are available starts with knowing which ones you're eligible for and we can help with that.

Am I eligible?

Benefits

  • Help your loved ones buy sooner. On average, it takes almost 10 years to save up a house deposit. By helping your loved ones top up their current deposit savings, or supply the entire down payment, you can help them get on the property ladder earlier.
  • Provide support without using cash. As the gifted deposit is unlocked from your property, you don’t need to use cash savings or draw down on your pension to help your loved ones buy.
  • Reduce your inheritance tax liability. Because you are releasing money from your home to gift to loved ones sooner, a Deposit Boost can be an effective strategy to reduce the potential inheritance tax liability on your estate. Saga Mortgages does not advise on inheritance tax, and we recommend you seek professional advice.
  • You won’t be a guarantor. Because a Deposit Boost involves two separate mortgages, there’s no link between you and your loved ones financially. This means you are not named on their mortgage as a guarantor, you’re not legally responsible for their loan, and your creditworthiness is not linked to them either. You are only responsible for the repayments on the mortgage used to release funds from your property.
  • You could help your loved ones access lower interest rates. With a larger house deposit, lenders will likely offer your loved ones lower mortgage interest rates, as they will be seen as a smaller risk to them as a borrower. This means over the course of their mortgage, they could pay significantly less in interest, as well as keeping their monthly costs lower.

Risks and considerations

  • You must own at least 50% of your home. If you have an existing mortgage, you will have fewer choices available to you, particularly as you approach retirement. As a minimum, lenders often require Boosters to have paid off at least 50% of their mortgage in order to qualify.
  • You will need to pass an affordability assessment. In order to qualify for a Deposit Boost, Saga Mortgages will conduct a credit check and affordability test to determine if you can afford the monthly repayments. If you are overcommitted to existing loans, such as your current mortgage, have substantial expenses or your income or pension isn’t sufficient, a lender may decide you are ineligible to release the amount of money you’d like to borrow.
  • There will be debt against your home. As with any mortgage, there is a risk of repossession if you miss your monthly repayments. However, your affordability is carefully assessed to mitigate this risk. It is your legal responsibility to ensure you make the repayments on your mortgage loan; if you do not keep up with your repayments, your home may be repossessed.
  • You will have no legal rights to your loved one’s property. As a Deposit Boost involves two separate mortgages, you will not be a co-owner of your loved one’s property. If you are interested in contributing to their house deposit in return for equity in their home, there are other mortgage products you could consider. 
  • You will either use a Retirement Interest-Only mortgage, or a standard remortgage. Both of these mortgage products come with their own risks and considerations you should know about. The team at Saga Mortgages can walk you through both options and help you find the right choice for you and your family. You can also find out more about Retirement Interest-Only mortgages here and standard remortgages with Saga Mortgages.

Here and ready when you are

Whether you have questions about Deposit Boost mortgages or just want to find out more, the expert team are on hand to help.

0330 018 3071

Mon-Thu 9am-8pm
Fri 9am 5:30pm
Sat-Sun 10am-3pm

Am I eligible?

Frequently asked questions

Here are some of our most frequently asked questions
Who is eligible for a Deposit Boost?

In order to be eligible for a Deposit Boost, you need to own your own home and have enough equity in the property to meet lenders’ requirements.

Typically, lenders will want you to own at least 50% of your home, although some lenders may accept Boosters who own a smaller percentage of your home in comparison to the loan (also known as your Loan-to-value ratio, LTV). You’ll need to pass the lender’s affordability assessments. Plus, you will need a good credit rating.

Do both mortgages need to be with the same lender?

No, you and your loved one do not need to get mortgages with the same lender. Your mortgages will be completely separate from one another, so can be from entirely different lenders. The expert team at Saga Mortgages can help you and your loved one find the right mortgage deal for you from thousands of products across the market*.

Do both parties need to use the same mortgage broker?

No, you and your loved one do not need to use the same mortgage broker, although this can help to keep things organised. There is a lot of admin involved in setting up a mortgage, and having the same team dealing with both your mortgage applications can help to keep things streamlined.

At Saga Mortgages, one of the expert mortgage advisors will be allocated to your case, so you’ll be in safe hands from the get go.

Can I move house after using a Deposit Boost?

When you use a Deposit Boost, you release funds from your current property. This means the amount of equity you hold in the property is reduced. But it is still possible for you to move houses with a Deposit Boost mortgage, for example to downsize to a smaller home.

The mortgage debt would be repaid through the house sale. Note that this would mean you will have less equity to use in the purchase of your next home. 

Are there other ways I could support my loved one’s purchase?

Yes, there are various ways you can support your loved one’s home purchase. For example, if you do have cash savings, another way you could help them buy is through Savings as Security mortgage or even downsize.

To discover all the ways you could support, create a recommendation by completing a fact find. 

How is this different from equity release?

A Deposit Boost essentially uses a small mortgage to raise capital from your property, which you pay back through monthly repayments. Whereas with equity release, you’ll release funds from your property as a lump sum or in small instalments.

Once you’ve accessed your money (after any mortgage balance has been settled), you can spend the rest as you wish. With equity release, you won’t have to make any monthly repayments, unless you choose a product that comes with the option of making regular payments to reduce the total cost of borrowing. 

Why choose Saga Mortgages?

Saga Mortgages is a service provided by Tembo, available exclusively to Saga. You’ll benefit from their award-winning advice from a friendly, experienced team of mortgage professionals, who are available 7 days a week.

They’ll search all the available options to find the best option and mortgage rate for you, including specialist products bespoke to Saga Mortgages.

Will I be able to talk to an advisor?

The Saga Mortgage service enables you to book an appointment with Tembo's award-winning mortgage advisors. Simply complete our online fact find and, if you’re eligible, you’ll be directed to book an appointment.

The team is available 7 days a week, ready to answer any questions you may have.

What lenders will you get access to?

With Saga Mortgages, you will have access to mortgage advice through our partner Tembo. Their award-winning mortgage advisors will search over 20,000 mortgage products and over 100 lenders to find the most suitable and best priced deal for you.

This includes all the high-street lenders you’ll be familiar with, like Nationwide, Halifax, Lloyds, Barclays and HSBC, as well as smaller, specialist lenders like Livemore and Generation Home.

Is Saga Mortgages FCA regulated to give mortgage advice?

All mortgage advice through Saga Mortgages is provided by Tembo Money Limited, who are regulated by the Financial Conduct Authority (FCA) under the registration number 952652. Their team of award-winning mortgage advisors are experienced in providing mortgage advice, including guidance on remortgaging, family supported mortgages and later life lending.

Tembo market substantiation

*Tembo Money Limited has access to over 20,000 mortgage deals. For standard residential mortgages alone, this includes 7,253 deals at  70% LTV, 7,189 deals at 75% LTV, 3,329 deals at 80% LTV, 3,329 deals at 85% LTV, 788 deals at 90% LTV and 255 deals at 95% LTV. 

Important information

Saga is a registered trading name of Saga Personal Finance Limited, which is registered in England and Wales (company number 3023493). Registered office 3 Pancras Square, London, N1C 4AG. Saga Personal Finance Limited is authorised and regulated by the Financial Conduct Authority under the registration number 178922. Tembo Money Limited (12631312) is a company registered in England and Wales with its registered office at 18 Crucifix Lane, London, SE1 3JW. Tembo is authorised and regulated by the Financial Conduct Authority under the registration number 952652. Tembo Money was awarded Best Mortgage Broker at the British Banking Awards in 2022 and 2023.