Not every family wants — or is able — to hand over a cash gift for a deposit. Family deposit and springboard mortgages offer an alternative: family support structured through savings or security rather than a straightforward gift, helping buyers qualify for a mortgage with little or no deposit of their own.
How springboard mortgages typically work
With a springboard mortgage, a family member deposits a sum of money (commonly around 10% of the property's value) into a linked savings account with the lender, rather than gifting it directly to the buyer. This allows the buyer to secure a mortgage — often up to 100% of the property's value — with the family member's savings acting as security rather than being handed over outright.
Family deposit mortgages: a similar concept
Family deposit (sometimes called family-linked or family assisted) mortgages work on a similar principle: a relative's savings or, in some product variants, equity in their own property, support the buyer's application and may reduce the deposit the buyer needs to find themselves, without the money being an outright irrecoverable gift.
How this differs from a straightforward gifted deposit
| Gifted deposit | Springboard / family deposit | |
|---|---|---|
| Money changes hands permanently | Yes | No — it's returned eventually |
| Buyer's own deposit needed | Often still needed (unless gift covers it fully) | Can be reduced to very little or none |
| Family member's funds at risk | No — already gifted, no further exposure | Yes — tied up as security for a period |
| Family member earns anything | No | Sometimes — interest on savings-backed products |
Why a buyer might choose this over a straightforward gifted deposit
- The family member may not want to give away a large sum permanently, especially if they may need access to it later
- It can support a larger mortgage or lower buyer-provided deposit than the family member's savings alone might otherwise achieve as a straightforward gift
- Some structures let the family member's savings earn interest during the lock-in period, rather than sitting as an outright gift with no return
Risks the family member should understand
Risks the buyer should understand
- Borrowing at a very high (sometimes 100%) LTV carries negative equity risk if property values fall shortly after purchase
- The arrangement depends on the family member's continued willingness and financial stability to keep funds locked in for the agreed period
- Product availability and terms vary significantly by lender, so comparing options (ideally via a broker familiar with this niche) matters
Who tends to use these products
Springboard and family deposit mortgages tend to suit buyers with a stable income who could afford mortgage repayments but have struggled to save a deposit independently, where a family member is willing to provide meaningful support without an outright, permanent gift.
You may also find our guides on Guarantor and Joint Mortgages: A Practical Guide and How Much Deposit Do You Need for a UK Mortgage? useful.
Our free Mortgage Affordability Calculator can help you check this against your own figures.
The bottom line
Family deposit and springboard mortgages offer a genuinely useful middle ground between a full cash gift and going it alone, letting relatives support a purchase while keeping some control over their money. Both the buyer and the family member should fully understand the risks and lock-in terms before committing, ideally with independent advice for the family member providing the security.