Curious about the Family Boost Mortgage advertised by on TV recently by Halifax? We caught it and wondered what it was all about ('the Bank of Mum and Dad' was the phrase that popped into our heads).
Well, this new mortgage product from Halifax is a 100 per cent mortgage, or guarantor mortgage by another name, and makes it possible to buy a property without a deposit – but will require a family member to put 10 per cent of the house price into a special Halifax savings account for three years (hence the mention in the ad about mum and dad's savings).
So, if you've been trying to find a mortgage deal for a while (we have a mortgage comparison tool to help you with this, by the way), it could be what you're looking for.
The advantages of the Family Boost Mortgage include a three-year fixed interest period, which makes budgeting for a mortgage less stressful, especially given the current uncertain political situation.
Parents also won't be out of pocket, as the money will be returned to them, with interest, at the end of the three-year period, provided you (the 'child') have kept up with your repayments. And there's no confusion about who owns the home – only the home owner is on the deeds, regardless of who helped them.
In order to qualify for the scheme, the helpful family member needs to have a Halifax Reward or Ultimate Reward current account, which will come with a monthly fee. You also can't use this scheme to buy a new build property or self build, and you can't use it in conjunction with government schemes such as Shared Ownership or Help to Buy.
Our advice? See what you can afford with our comparison tool and then speak to an independent advisor before you proceed so you can be sure to get the best deal.