Guarantor
Use a Deposit Boost to build a deposit from a loved one's home
Add to your savings or create a house deposit from scratch with help from a loved one. They’ll unlock money from their property to gift to you as a deposit.
Suitable for buyers, movers & remortgagers
Build a deposit from scratch
Required the support of a loved one
How does it work?
A Deposit Boost involves two separate mortgages. The first is taken out by a loved one against their own property in order to unlock some money. This can be done using an interest- only retirement mortgage, so monthly payments are kept low, or through a standard remortgage.
The proceeds are given to you as a gifted deposit, and we’ll arrange your mortgage. With a larger deposit you could increase your budget, and also access lower interest rates. On average our Deposit Boost customers will save £17,000 in interest alone over a 5-year period.
Why Tembo?
We help buyers, movers and homeowners discover how they could boost their affordability in 3 simple steps. It’s why we’re the UK’s Best Mortgage Broker.
Things to consider
All mortgages have risks and benefits. Here are some key things you should know before applying for a Deposit Boost
What are the benefits?
Buy a home of your own sooner
On average, it takes almost 10 years to save up for a house fund. With a loved one helping to top up your deposit, you can get on the property ladder quicker.
Access lower interest rates
With a larger house deposit, lenders will typically offer you lower interest rates as you present less of a risk to them. This means over the course of your mortgage, you could pay significantly less in interest to your lender.
Your Booster can support without using cash
As the gifted deposit is unlocked from your Booster’s property, they don’t need to use cash savings, or draw down on pensions or investments.
Your Booster isn't a guarantor
As the two mortgages are separate, there’s no link between you and your Booster financially. They are responsible for their mortgage, and you yours. If either of you missed repayments, the other party is not liable.
Your Booster may reduce their IHT liability
Because your Booster is releasing money from their estate to gift to you earlier in your life, your Booster’s future inheritance tax liability could be reduced.
Risks and considerations
Debt against the Booster's home
As with any mortgage, there is a risk of repossession if the Booster’s monthly repayments are missed. We carefully assess affordability to mitigate this risk.
Your Booster must own at least 50% of their home
Boosters with an existing mortgage have fewer choices available to them, particularly if they are close to retirement. As a minimum, they will need to have paid off at least 50% of their mortgage.
Your Booster will need to prove affordability
As the Deposit Boost is a mortgage product, Boosters will need to pass a credit check and prove affordability. If they are overcommitted with existing borrowing and outgoings, or their income isn't sufficient, they may not be eligible.
Your Booster will have no legal rights to the property
As a Deposit Boost involves two separate mortgages, your Booster will not be a co-owner of the property. If your loved ones are interested in contributing to your house deposit in return for equity in the home, explore Deposit Loan instead.
Got questions? We’ve got answers
See all FAQsFrequently asked questions
The application process
Get into your very own home in 4 simple steps
Make a Tembo plan
In under 10-minutes we’ll check your eligibility for a Deposit Boost mortgage as well as our other buying schemes. Plus you’ll get a personalised mortgage recommendation including interest rates and repayments.
Talk to an expert
Book a call with our mortgage experts to complete the qualification process, and we’ll cover off any questions you might have about Deposit Boost and any other schemes. Bring along your Booster so we can answer their questions too.
Apply for a mortgage
Your dedicated advisor will undertake full affordability with you & your Booster, and prepare an application with your chosen lender. As part of the application process, we’ll help to arrange for your Booster to get Independent Legal Advice.
Make home happen
During the conveyancing process, we’ll liaise with the seller and your solicitors to ensure a smooth purchase. We’ll also provide a free protection review. Your case manager will be on hand all the way through to move in day!
Other schemes you might like
Explore our other schemes to see alternative ways to buy
On your own
Deposit Unlock
Purchase a new build home from a participating home builder with just a 5% deposit.
See detailsWith a guarantor
Deposit Loan
Boost your deposit with help from family or friends in return for a share of your home
See detailsPart buy part rent
Private Shared Ownership
Buy a share of a home, and pay rent on the rest. Over time, you can staircase to full ownership.
See detailsLearn more
Confused about mortgages? Read our guides for expert tips on saving, buying and the market.
Other mortgage schemes
You can be snug in your very own home in 4 simple steps
Increase your affordability
Without a guarantor