How to secure your interest after a family fallout

The tension between family support and personal autonomy is a reality for thousands of UK first-time buyers. We’re seeing a growing trend; ‘Financial Independence’ is becoming as much of a priority as home ownership, with searches for financial independence up +8% YoY. Buyers are increasingly looking for ways to get on the ladder that don’t leave them feeling indebted to the ‘Bank of Mum and Dad’. 

The Shift Away from Gifted Deposits

Our data shows that just under a quarter of First-Time Buyers (FTBs) used gifted deposits to purchase their homes in 2025. This percentage dropped to its lowest level in over six years:

Gifting (deposits) gone wrong

"For some, gifting may feel like they are then indebted to family members which, without boundaries, can lead to fallouts," says John Fraser-Tucker, Head of Mortgages at Mojo Mortgages. "Parents might ask for a spare key or critique choices made to the home. Many FTBs are now holding off on gifted deposits, seeing them as a blocker to their financial independence"

“In contrast there are other buyers who prioritise privacy and financial independence over speed of getting on the property ladder or the amount they will put towards their deposit. With 95% mortgages now becoming more widely available, many FTB's are holding off on using gifted deposits, seeing them as a blocker to their want for financial independence. This reflects the growing trend where ‘Financial Independence’ is becoming as much of a priority as home ownership itself.”

“Everyone’s circumstances are individual. This is where a specialist mortgage broker becomes crucial. We don’t just find you the lowest rate; we help you find a deal that protects your future wellbeing and your family relationships.” states John Fraser-Tucker, Head of Mortgages at Mojo Mortgages. 

Navigating Your Options Safely

Whether you want to bypass family help or find a "middle ground," a specialist broker can navigate options that high-street banks might not show you. 

Option 1: The ‘No-Family’ Route

“If you want to go it alone, there are several tools available to help you bridge that gap and save enough for a deposit, independent of family help”, such as:

• 95% LTV Mortgages (Freedom to Buy): The government's permanent mortgage guarantee scheme (launched as "Freedom to Buy" in 2025) means lenders are more confident offering mortgages with just a 5% deposit.

• Income Booster Mortgages: Some lenders offer "income boosters" for certain professions, allowing you to borrow up to 5.5x your salary solo, reducing the need for a massive cash deposit.

• The Lifetime ISA (LISA): A great tool, but one with specific "strings" to watch out for:

  • The Bonus: The government adds 25% to your savings (up to £1k a year).

  • The Limit: The property must cost £450,000 or less.

  • The Usage: You cannot use it for a Buy-to-Let; it must be your primary residence.

  • The Penalty: If you withdraw for anything other than a first home (or retirement), you lose the bonus plus a portion of your own savings.

Option 2: The ‘Middle Ground’ (Boundary-Safe Help)

“If you do need a boost but want to maintain your independence, we recommend structures that act as a professional buffer. These can include:”:

• Joint Borrower Sole Proprietor (JBSP): A parent adds their income to the mortgage application to help you borrow more, but their name is not on the property deeds. You remain the 100% legal owner.

• Deposit Unlock / Family Springboard: Instead of a ‘gift,’ parents place their savings into a locked account for 3–5 years as security. They earn interest, and they get their money back once you’ve built up enough equity. It’s a ‘temporary boost’ rather than a permanent obligation.

• Gifted letter: Make sure to get in writing if a family member is giving you money for a deposit. This way you have legal standing if they claim it was a loan or ask for the money back in future. 

Why Use a Broker Instead of Going Solo?

Navigating these options alone can be a legal and financial minefield. Going through a mortgage broker offers:

1. A Buffer for Family Negotiations: “A mortgage broker can help educate and explain the process clearly around how a JBSP works and you can then discuss, with this specialist knowledge, if this would be a good compromise for you and your family. Having a broker go through options can also help take the emotion out of the conversation.”

2. Access to ‘Hidden’ Lenders: “Many specialist deals that support JBSP mortgages aren't available directly to the public, which is where a broker can really help.”

3. Financial Peace of Mind: “We ensure our customers have the relevant ‘Gifted Deposit’ paperwork to complete. The paperwork is important to complete and submit as it can protect you from future claims if a fallout occurs.”

Expert Recommendation: Seek Legal Advice

“While a broker helps find the right deal, navigating these options can be a legal and financial minefield. We strongly advise all buyers to consult a qualified solicitor. A legal professional should review gifted deposit declarations, JBSP arrangements, or deeds of trust to ensure your property rights and long-term interests are fully protected.

Buying your first home should be the start of your independent life, not a continuation of family drama.”

Important Risk Warning: Your home may be repossessed if you do not keep up repayments on your mortgage.

Data used is proprietary to Mojo Mortgages using first time buyer customer data from 2018-2025.