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.
Terms & Conditions
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:
- FREE standard valuation and £500 cashback
- 10% overpayment allowance on fixed rate products
- No ERCs on tracker products
- Remortgage tolerance of up to £500 (NFI Online cases)
- Borrowing in retirement available (up to 60% LTV)
How to submit a Family Deposit Mortgage application
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.
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.
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.
If you have any questions read our FAQs about Family Deposit Mortgages.