How First-Time Buyers Can Get Family Help | 2026 Guide

How First-Time Buyers Can Get Family Help onto the Property Ladder

Navigating the UK property market in 2026 remains a significant challenge. With house prices in areas like Crawley and the wider South East continuing to rise, the "Bank of Mum and Dad"—and increasingly, Grandma and Grandpa—is more active than ever. This guide explores the various ways family members can provide crucial financial and legal support to help you buy your first home.

For many first-time buyers, the first step is the hardest. The biggest hurdle is often saving for a deposit, which now frequently requires tens of thousands of pounds. While financial help can make the difference, it is vital to navigate these arrangements carefully to protect both your future and your family relationships.

Ways Family Can Help: Financial Support Options

Family support comes in many forms, each with its own pros, cons, and 2026 tax implications. It's crucial for everyone involved to understand the specifics before signing any contracts.

• Gifting a Deposit

  This is the most common route. A relative gives a lump sum for the house deposit. In 2026, most lenders require a Gifted Deposit Letter confirming the money is a non-repayable gift with "no strings attached."

  Tax Tip: Under current 2026 rules, you can gift up to £3,000 per year (or £6,000 if carrying over from the previous year) completely free of Inheritance Tax (IHT). Larger gifts fall under the "seven-year rule"—if the donor lives for seven years after the gift, it typically falls outside their estate for IHT purposes.

• Joint Borrower Sole Proprietor (JBSP) Mortgages

  Often called an "Income Boost," this allows a family member to join the mortgage to increase affordability without being named on the property deeds. This is a savvy move in 2026 because the family member avoids the 3% Stamp Duty surcharge for second homes, as they don't legally own the property.

• Family Springboard & "Booster" Mortgages

  Instead of giving cash away, family members can put 10% of the property value into a secured savings account linked to your mortgage. They typically earn interest on their savings, and the money is returned to them after a set period (usually 3–5 years), provided you keep up with your payments.

• Equity Release (Lifetime Mortgages)

  For homeowners aged 55+, equity release has become a popular way to fund a child's deposit. In 2025, over £2.5 billion was released from UK homes, much of it gifted to the next generation. This allows parents to see their "inheritance" at work while they are still alive, though it reduces the final value of their estate.

Navigating the Emotional and Legal Side

While the financial side is complex, the emotional dynamics can be just as tricky. Buying a home is a major milestone, and family expectations can add pressure.

• Open Communication: Discuss exactly how the money will be used and what happens if circumstances change (e.g., a breakup or job loss).
• Formalise the Agreement: Even for gifts, a Declaration of Trust is highly recommended. This legal document protects the gifted money—for example, ensuring that if a couple splits up, the parents' gift stays with their child rather than being split with an ex-partner.
• Solvency Evidence: Lenders and solicitors will perform Anti-Money Laundering (AML) checks. Be prepared to show 3–6 months of bank statements to prove where the gifted funds originated.

Important Considerations & Professional Advice

Getting help from family is a fantastic way to secure your future, but it requires professional oversight to ensure no one is left vulnerable.

At New Move, we work closely with expert mortgage brokers and solicitors who specialise in family-backed purchases. Whether you are looking in Crawley, Horsham, or East Grinstead, we can help you structure your purchase correctly.

Ready to take the first step?

Contact our team today for a free consultation on starting your property journey.

© 2026 New Move Estate Agents. This content is for informational purposes only and does not constitute financial or legal advice.