Family Deposit Mortgage FAQs

Last updated: 22 March 2017

Family eligibility

Who is eligible for a Family Deposit Mortgage?

Clients who’d like to take out a remortgage with capital raising, up to 80% LTV*, to help a family member onto or up the property ladder with Nationwide are eligible (subject to standard lending criteria and affordability requirements).

The additional borrowing from the Family Deposit Mortgage must be wholly gifted towards a family member’s Nationwide mortgage.

Check our full Family Deposit Mortgage Terms & Conditions here

*Maximum 60% LTV for Borrowing in Retirement applications

What is the definition of a family member?

Family members are defined as being a spouse, civil partner, parent, brother, sister, child, grandparent, grandchild or someone whose relationship has the characteristics of a family relationship.

Is the Family Deposit mortgage only to be used to help First Time Buyers?

No, it’s also available to help those looking to move up the property ladder.

Can my client take out a Family Deposit Mortgage to gift the funds to their parents?

Yes, they can. The purpose of the Family Deposit Mortgage is to support families, so we understand that clients will want to help their relations of an older generation, and this could include parents or grandparents.

Can my clients take out a Family Deposit Mortgage for their friends or neighbours?

No, the Family Deposit Mortgage can’t be used to help friends or neighbours.

Product eligibility

What’s the maximum LTV for Family Deposit Mortgages?

The maximum LTV is 80% (Maximum 60% LTV for Borrowing in Retirement applications)

Do the Buyer and Helper both have to apply through the same channel (such as through a broker or direct with Nationwide)?

No, the Helper and Buyer can apply through the channel of their choice. If the Buyer is applying directly with Nationwide, you’ll still need to see their DIP and enter the reference number in the ‘additional information’ section in NFI Online / MTE.

However, if the Helper is an existing Nationwide mortgage member, looking for a further advance, they will need to apply for this directly with Nationwide. In these cases, the Buyer can still apply though a broker

Will the Helper receive a preferential rate on the whole of the remortgage or just the capital raising element?

The preferential rate will apply to the total new loan, this includes the remortgage and capital raising element, for the length of the product term agreed with your client.

If my client’s property is unencumbered (mortgage free), can they still take out a Family Deposit Mortgage?

Yes, the Family Deposit Mortgage is available to all those who don’t currently have a mortgage on the property they own (subject to criteria and affordability requirements).

Can a Borrowing in Retirement client take out a Family Deposit Mortgage?

Yes, the Family Deposit Mortgage is available to those who want to borrow under the Borrowing in Retirement scheme (Standard Borrowing in Retirement LTV limits and eligibility criteria will apply).

My client only wants to use part of the funds towards a family member’s gifted deposit, and the remainder for other purposes, are they still eligible for the product?

No, the funds from this product must be used exclusively for helping the family member buy their main residential property. If your client would like to use the funds for dual purposes, the Family Deposit Mortgage can’t be used, and a product from our standard range must be chosen instead.

Does the Buyer need to take out their mortgage direct with Nationwide?

No, the Helper and Buyer can both apply through an intermediary.

Can the Buyer use the funds gained from the Helper to take out a mortgage with another mortgage provider?

No, the Buyer must use the funds towards a deposit for a house purchase mortgage with Nationwide.

Does the Family Deposit Mortgage affect any other mortgage incentives offered by Nationwide?

No, incentives offered by Nationwide are unaffected by the Family Deposit Mortgage, and won’t affect your client’s eligibility of them.

Keying a Family Deposit Mortgage in NFI Online / MTE

What if I forget to add the Buyer’s DIP reference to the Helper’s case?

The application can’t progress to Full Mortgage Application without referencing the Buyer’s valid Nationwide DIP, which must be entered in the ‘additional information’ section in NFI Online / MTE. Please reference Family Deposit Mortgages when inputting this, eg FDM Buyer’s DIP MXXXXXXX.

What If my client provides an invalid DIP reference?

If a valid DIP reference isn’t added to the ‘additional information’ section in NFI Online / MTE, you’ll be contacted to provide this. Or, you’ll need to select a remortgage product from the standard range.

Do the transactions between the Helper and Buyer need to be simultaneous?

It doesn’t matter who carries out a DIP appointment first, but the Helper’s application can’t progress to a Full Mortgage Application until the Buyer’s DIP reference has been added to the ‘additional information’ section in NFI Online / MTE.

Release of funds

What if the Helper doesn’t drawdown the funds within the 90-day offer validity period, will they have to start the application process again?

Yes, the standard Nationwide 90-day offer validity period applies to the Family Deposit Mortgage. If they don’t drawdown funds in this timeframe, they’ll need to reapply.

If my client no longer requires the funds, can they return them without incurring an Early Repayment Charge (ERC)?

Yes, if part of the funds released are returned within 90 days after being withdrawn, then these can be returned ERC free. This won’t affect the overpayment allowance within the first year. Any interest that has been paid in the 90 days by the customer won’t be repaid.

Options at end of product term

After the product term has ended, can the Helper reapply for the same preferential rate they received as part of the Family Deposit Mortgage?

When the product term is coming to an end, they can choose an alternative product from Nationwide’s switcher range. If they don’t switch to another product, they’ll be transferred on to the Nationwide SMR.

Will my client receive the Family Deposit rate for the lifetime of the mortgage?

No, they’ll receive the Family Deposit Mortgage rate for the product term. As the term comes to an end, they can choose a product from our switcher range.