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Buy sooner with the Family Help to Buy Scheme

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What is the Family Help to Buy Scheme?

This scheme allows buyers to increase their existing house deposit with the help of their family. We'll release some equity that has built up in a family member's home with a specialist mortgage, and that money will be given to the buyer as a gifted deposit. So the buyer can get on the ladder faster, for less, and without giving equity to the government.

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Help to Buy is ending. Luckily, we've got something better.

The government’s Help to Buy scheme offered buyers an equity loan which would increase their existing house deposit, so they could access cheaper mortgage rates and get on the property ladder faster. 

In a similar way, the Family Help to Buy Scheme is a way for buyers to access additional capital to buy a home. But instead of the government lending them an equity loan, the buyer’s family would provide them with a gifted deposit. The best bit? They don’t need cash savings.

Instead, we’ll release money from a family member’s home (with a remortgage or retirement mortgage) which will be given to the buyer as a gifted deposit. We’ll then arrange a mortgage for the buyer, so they can buy their home.

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Family Help to Buy scheme

With the Family Help to Buy scheme, you could buy that property worth £180,000

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The Family Help to Buy scheme involves two separate mortgages. 1 mortgage for you, and 1 remortgage for a family member's property.

BUYER’S MORTGAGE

Loan amount

£138,500

Product fee

£1,559

Interest rate

1.2%

Monthly payment

£413

BOOSTER’S REMORTGAGE

Loan amount

£41,500

Product fee

£0

Interest rate

2.59%

Monthly payment

£51

Get some advice from a Tembo expert

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Family Help to Buy Scheme

The scheme allows buyers to increase their existing house deposit with the help of their family. We'll release some equity that has built up in a family member's home with a specialist mortgage, and that money will be given to the buyer as a gifted deposit. So the buyer can get on the ladder faster, for less, and without giving equity to the government

Check your eligibility How it works
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What is it?

Family Help to Buy Scheme is a remortgage taken out by a family member or friend on their property to release money. The proceeds are then gifted to the buyer to put towards their deposit.

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Why use Tembo's Family Help to Buy Scheme?

By increasing your deposit, you could buy your home sooner, fill an affordability gap and access lower interest rates. On average, it saved our users £14,000 in interest over a 5-year term.

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What's the impact on a Booster?

As the mortgages are in separate names, each person is responsible for the mortgage payments, although these are typically much lower than a purchase mortgage as they are borrowing less.

£22

per month*

Based on a 2.59% interest rate

*Numbers shown are calculated based on a Retirement Interest Only mortgage. They are illustrative and do not constitute advice.

The Booster's remortgage payments start from £22p/m

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Monthly payments start from as little as £22 to access £10,000. Plus, our mortgage brokers will run affordability checks for the Booster to be sure the remortgage is suitable.

How it works...

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So let’s say your dream home is £200,000 but you don’t have a 5% deposit saved.

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With Tembo and an eligible booster, we could get you that home.

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Your dad wants to help you with a deposit

But without the cash to hand, he turns to Tembo. Our family mortgage specialists assess his eligibility and recommend the best way to unlock money from his property with a Family Help to Buy Scheme.
See the available options.

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He releases £20,000 from his property and gifts it to you

As the Family Help to Buy Scheme is in your dad's name, he is legally responsible for monthly payments. Any arrangement for the buyer to pay this back to them is a personal agreement between the family.
Repayments start at £22p/month for a £10,000 loan.

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With your new 10% deposit, we find you a great mortgage to buy your home

A bigger deposit means lower interest rates, and we compare thousands of products to get you a great deal on your mortgage.

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Your Booster has helped you get on the ladder!

Plus, the funds from the Family Help to Buy Scheme are legally gifted, meaning your dad could reduce his inheritance tax liability. You could return the £20,000 further down the line depending on your circumstances.

Tembo does not provide tax advice. We recommend you seek advice from a professional.

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Time to enjoy your home!

Help to Buy, with no strings attached.

How does the Family Help to Buy Scheme stack up against the government's version?

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Three key advantages

  • The loan amount is fixed

    With the government's scheme, the amount owed isn't fixed. It's based on a % of the home's value, which will rise if the value increases. So the buyer could end up owing more than the government initially loaned. With a Family Help to Buy, the capital on the remortgage the family member takes out will not rise, and is not connected to the value of the home.

  • The family saves money in the long-run

    If a government equity loan isn't repaid within five years, the buyer will be charged interest. This increases each year based on the Retail Price Index, plus 1%, and there's the chance that rates could rise significantly. With a Family Help to Buy, the family member can fix an interest rate for the duration of the loan.

  • No restrictions on property type

    Homes bought under the government's Help to Buy have to be new builds. With the Family Help to Buy Scheme, buyers can snap up their dream home, regardless of its age.

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The bigger the deposit, the lower the interest.

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Our average Family Help to Buy scheme user saves £14,000 over 5 years in interest fees alone! More money for your family, less for the banks.

Interest paid over 5 years

£14k

5%

£12k

10%

£10k

15%

£8k

20%

£6k

25%

Deposit

We've helped a lot of people become homeowners. Here's Tembo in their words.

"Had the most brilliant experience!"

Tembo worked through a complicated situation to help us unlock funds from another property. This made the difference in us getting the mortgage we needed, and was a highly personal service (which I wasn't expecting!)

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Sahil

buyer

"Why isn't everyone doing it?"

Not normally one for reviews, but I wanted to spread the word. The suggestions I received were so bespoke I was impressed. Definitely one of those "why isn't everyone doing it?" moments. Bit of a no brainer given the savings potential.

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Paddy

buyer

"Thank you Tembo"

We had several meetings with Tembo to consider using the Family Help to Buy Scheme to help one of our children. They could not have been more helpful in providing a number of different options. We were extremely impressed and would not hesitate to recommend or instruct them in the future.

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Catherine

booster

"A fantastic experience"

After my original lender unexpectedly asked for a higher deposit than I had, I thought I'd have to give up my dream flat, but Tembo was able to find me a solution super quickly. I'd definitely recommend if you're having trouble getting a more traditional mortgage.

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Jane

buyer

"So happy to help our family"

Our daughter found a house, but there was a shortfall in what she could borrow. There was a few weeks of panic, and then we came across Tembo - had never heard of them before. Good service. So happy to have been able to help our family.

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Mrs G

booster

"Fantastic service for first-time buyers"

My son is a first-time buyer and one company let him down. He was very disillusioned and thought he would lose the house, but then he found Tembo. They sourced a mortgage in record time, and were punctual and reliable. I wouldn't hesitate to use Tembo again.

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Mandy

booster

Risks & considerations

As with all loans and mortgages, it's important to understand the potential risks and eligibility criteria when making a decision.

Boost guideFAQs

Things to consider

  • There will be debt against the Booster's home

    As with any mortgage, there is a risk of repossession if monthly payments are continuously missed. Our team of mortgage brokers will carefully assess the affordability of the Booster before submitting an application to mitigate the risk of this happening.

  • An existing mortgage will affect eligibility

    Tembo doesn't offer second or third charge mortgages, so to be eligible for the Family Help to Buy scheme, the Booster will need to have either paid off their mortgage in full, or have less than 60% remaining.

  • The Booster will need to prove affordability

    As the Family Help to Buy scheme 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.

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Ready to speak to an expert?

Speak to one of our friendly team about the Family Help to Buy Scheme today. There are no obligations, and you'll never be charged for advice alone, so don't be shy!

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