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Family Springboard Mortgages

Help your loved ones onto the property ladder using your cash savings with Family Springboard Mortgages.

If you have cash savings, you could help your loved ones get on the property ladder sooner. A springboard mortgage lets you place your money in an account with their lender, which acts as a deposit.

It’s also known as a Savings as Security or Family Guarantor mortgage. Your money stays safe and is returned after a set period, as long as repayments are made.

The team at Saga Mortgages, provided by Tembo, can guide you through the process. They’ll help you decide if it’s the right choice for you and your family.

In this guide, we’ll cover:

How do springboard mortgages work
Benefits of springboard mortgages
Comparing family support mortgages
Frequently asked questions

How do springboard mortgages work?

A springboard mortgage lets family members help the next generation buy a home – even if they don’t have a deposit saved.

Here’s how it works:

You (the guarantor) place 10% of the property’s value into a savings account with the lender. This acts as the deposit. The money is held for a set time – usually five years – as security for the mortgage.
If your loved one makes all their monthly repayments, you’ll get your savings back at the end of the term, plus any interest earned.
However, if repayments are missed, your savings could be at risk. Their home may also be repossessed.

Different lenders offer different versions of this mortgage. Some may ask you to have your own mortgage with them before you can help.

Which lenders offer springboard mortgages?

Not all lenders offer springboard mortgages, but there are a few options available alongside Saga’s Family Springboard Mortgage, including:

Barclays Family Springboard. Requires a 10% helper deposit held in a Helpful Start account for 5 years. Helpers can be family or friends. Mortgage terms can be up to 35 years, and the borrower retains full ownership of the property.
Halifax Family Boost. Uses a 10% helper deposit held in a 3-year fixed savings account. No deposit is needed from the buyer. New build properties aren’t eligible, and the buyer must have a Halifax current account.
Lloyds Lend a Hand. Requires a 10% deposit held in a 3-year fixed savings account with a legal charge. Independent legal advice is needed, and Lloyds contributes £300 towards the helper’s legal fees.

Availability, terms and interest rates can change, so it’s worth checking with each lender directly to see what’s currently on offer.

Benefits of springboard mortgages

Help your loved ones buy sooner. On average, it takes almost 10 years to save up for a house deposit. With a springboard mortgage, you can help your loved ones buy a home of their own sooner, instead of waiting to save up the money themselves.
Your support is temporary. Your savings are held by the lender for a set period, usually five years. At the end of this period, if your loved one has made each of their monthly repayments and can afford the mortgage by themselves, you will get your savings back plus any accrued interest. So, if you need that money for anything else in the future, like care costs or retirement savings, you can get it back.
You could support multiple buyers. If you have sufficient savings to do so, you can choose to be a guarantor for multiple buyers. So, if you have children or grandchildren you want to help, you could support them all at the same time.
Your savings could increase. Over the course of the five-year product term, your savings will accumulate interest. Provided the borrower makes the monthly mortgage repayments, you could get back more than you originally put in.

Risks and considerations

Your savings are at risk. As a guarantor on a springboard mortgage, you are offering your savings as security against the mortgage. This means that if the borrower doesn’t keep up with their mortgage payments, you might not get your savings back. The buyer’s home also may be repossessed.
You cannot access your savings. During the five-year product term, you will not be able to access your savings. So, if you may need the money in the short term, a springboard mortgage may not be the right choice for you.
Becoming a guarantor could affect your affordability. If you want to take on more debt, acting as a guarantor for a springboard mortgage could have an impact on your ability to be approved for another loan.
The mortgage options are limited. Springboard mortgages are uncommon amongst lenders. This means there are fewer options to choose from, and your loved one might pay a higher interest rate than if they took out a standard mortgage.
The buyer may fall into negative equity. Because the homeowner may have no or very little equity in the property, this puts them at greater risk of ending up in negative equity if house prices go down. Negative equity is when a property’s value is less than the value of the mortgage.
Your credit score could be impacted. As you and the buyer are financially linked, if they default on their mortgage or experience other credit problems, it will affect your own creditworthiness.

How much can you borrow and for how long?

With a springboard mortgage, you can usually borrow up to 100% of the property’s value. The exact amount depends on things like your income, spending and credit history. Some lenders also set a maximum loan size – often around £500,000.

There are two key timeframes to know:

Fixed term. This is usually 3 to 5 years. During this time, your family member’s savings are held as security, and the mortgage rate stays fixed.
Full mortgage term. This is the total time to repay the loan – usually 25 to 35 years.

What happens if payments are missed or you repay early?

If your loved one misses payments on a springboard mortgage, it can affect them (the borrower) and you (the guarantor).

For the borrower:

Their credit score may go down.
They could risk losing their home through repossession.

For the guarantor:

The lender might hold the money you deposited for longer.
The lender could use your deposit to cover missed payments.

During the first five years, your loved one can usually make extra payments without any penalties. After that, they’ll need to give the bank notice – typically around three months – before making early repayments. If they don’t give notice, they might face extra charges.

Springboard mortgages vs other family support mortgages

Springboard mortgages aren’t the only way to help a loved one buy their first home. Here are some other family-supported mortgage options to consider:

Income Boost. Your loved one can add up to three family members to their mortgage. This can increase how much they can borrow. But if they can’t make the repayments, the added family members are responsible for covering the costs.
Deposit Boost. You can take out a mortgage on your own home to release some equity. Then, you gift that money to your loved one to use as part of their deposit.
Family Buy-to-Let mortgages. You buy a property and rent it out to your loved one. This gives them a stable place to live while you build up an investment.
Guarantor mortgages. You agree to cover the mortgage payments if your loved one can’t. This gives lenders more confidence and can help your loved one borrow more.

Frequently asked questions

Who is eligible for a springboard mortgage?

To be eligible for a springboard mortgage, you and your loved one will need to pass an affordability assessment and credit check conducted by the lender.

You will also need to have 10% of the value of the property your loved one wants to buy in cash savings. You may need to have a current account with the lender you choose to go with, too.

You do not need to be a blood relative to help someone through a springboard mortgage. However, they’re normally used by those who want to help their child or grandchild get on the property ladder with a family mortgage.

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

Yes, there are many ways you can support your loved one’s home purchase. For example, you could use a Deposit Boost to unlock money from your property and gift the proceeds to your loved one as part of their house deposit, or even downsize to access cash in your current home.

You could also direct them to an expert in mortgage affordability, like the team at Saga Mortgages, who can help them find ways to boost their buying budget, with or without family support.

If financial support isn’t an option and you have the space, you could allow them to move into your home and pay a small amount of rent. This lets them save up for a house deposit sooner.

Do I need to get legal advice beforehand?

Before agreeing to help someone with a springboard mortgage, it’s important to get independent legal advice. This enables you to understand exactly what you’re signing up for and whether it’s the right choice for you.

What happens if the guarantor dies?

If you are the sole person named on the savings account used for the springboard mortgage and you pass away, the lender will repay the savings and any accrued interest at the end of the product term to your representatives. To do this, the lender will need legal documents to confirm the death and to confirm who your representatives are.

If some or all the savings have been used to cover missed mortgage payments, the amount returned will be reduced.

If someone else is also named on the savings account, like a partner, the account will stay in their name and continue as normal.

Why choose Saga Mortgages?

Saga Mortgages is a popular choice for springboard and family support mortgages, designed to support people over 50 who are looking to take out a mortgage. You’ll get access to Tembo’s friendly, experienced team of mortgage experts, who will search the market to find the best options for you and your family.

To understand how a Family Springboard Mortgage could work for you and your family, create a Saga Mortgages recommendation. This shows you indicative monthly repayments, live interest rates and product explainers for this and other guarantor schemes.

Can you talk to an advisor?

Through the Saga Mortgages service, you can book a session with Tembo's award-winning mortgage advisors. Complete our online fact find and, if you’re eligible, you can book a session.

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

What lenders can you access?

With Saga Mortgages, you could access deals from high-street lenders. These include Nationwide, Halifax, Lloyds, Barclays and HSBC. We also offer access to specialist lenders like Livemore and Generation Home.

Is Saga Mortgages regulated by the FCA?

Tembo Money Limited provides all mortgage advice through Saga Mortgages. They are regulated by the Financial Conduct Authority (FCA) under the registration number 952652.

Are new build homes eligible?

Some lenders may not offer springboard mortgages for new build properties. Check with the lender directly to see what their policy is.

Will the helper earn interest and is it taxable?

With a springboard mortgage, the helper earns interest on the money they deposit. The funds are held in a savings account for a fixed term. As long as the home buyer keeps up with their repayments, the helper gets their money back with interest at the end of the term.

Here and ready when you are

Whether you have questions about a specific kind of mortgage or just want to find out more, the expert team are on hand to help.

0330 018 3071

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Important

Your home may be repossessed if you fail to repay your mortgage. Saga Money may receive payment from Tembo if you get a mortgage offer via the Saga Mortgages service. This will not affect the amount you pay for the service.

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 bank awards in 2022, 2023, 2024 and 2025.