NatWest Intermediaries
Family-Backed Mortgage

Family-Backed Mortgage

Helping your customers increase what they could borrow. Criteria applies.

ONLY FOR USE BY MORTGAGE INTERMEDIARIES

What is a NatWest Family-Backed Mortgage? Open in new window

Criteria Open in new window

Important steps for non-owners Open in new window

How much could your customers borrow? Open in new window

Frequently asked questions Open in new window

Additional help Open in new window

What is a NatWest Family-Backed mortgage?

A NatWest Family-Backed mortgage, sometimes known as a ‘joint borrower sole proprietor’ (JBSP) mortgage, can help buyers get onto the property ladder sooner or borrow more. It lets your customer add a second person to the mortgage but without them owning the property.

Adding a second person to the mortgage as a 'non-owner', can help your customers borrow more than they would otherwise have been able to borrow, which means they could buy their own home sooner than they thought. And, the non-owner could be a family member or friend.

Criteria

We require a minimum income of £20,000 gross per annum for the main applicant owner/occupier. This can be made up of all acceptable income types.
Standard residential mortgage policy rules will apply to all applicants, which includes our eligibility criteria of minimum age of 18 to maximum age of 75.
The non-owning borrower is not limited to family, it can be a friend.
This is not available with mortgage schemes such as Right to Buy and Shared Equity.
This is only applicable for Residential Purchase Products.
Maximum of 2 applicants: the owner and the non owner.
A fact sheet must be provided to the non-owning borrower at the point of application.
The non-owning borrower must seek independent legal advice before completion. An Independent Legal Advice Certificate will be sent to the non-owning borrower with the mortgage offer, seeking confirmation legal advice has been obtained. You must then upload this to the Broker Portal.

Important steps for non-owners

Non-owner fact sheet

A fact sheet must be provided to the non-owning borrower at the point of application.

Independent legal advice

With a NatWest Family-Backed mortgage, the non-owner must get independent legal advice once the mortgage offer has been issued and before the funds are released. Things to consider:

There will be the cost of the independent legal advice over and above the regular legal fees when buying a home.
Before proceeding with the Independent Legal Advice, your customer will be required to confirm that the legal advisor is registered with the appropriate regulatory body relevant authority:
England & Wales - Solicitors Regulation Authority
England & Wales - Council for Licensed Conveyancers
England & Wales - Charted Institute of Legal Executives
Scotland - Law Society Scotland
Northern Ireland - Law Society Northern Ireland

If your customer does not confirm this and the legal advisor is not registered, then we will be unable to reimburse them for any cost incurred as part of this.

An Independent Legal Advice Certificate will be sent to the non-owning borrower with the mortgage offer, seeking confirmation that legal advice has been obtained. This should be completed by them and returned to you to be uploaded to the broker dashboard.

Non-owner fact sheet Open in new window

How much could your customers borrow?

Quickly get an idea of how much your customer's could borrow with a NatWest Family-Backed mortgage, using our handy residential mortgage calculator.

Information Message

Example provided for illustration purposes only. All borrowing is subject to affordability. NatWest Family-Backed mortgage is subject to non-owner borrower also getting independent legal advice which is separate to the standard conveyancing on a mortgage.

Important Note – It is vital you factor in any additional background property costs related to the non-owning borrower to obtain an accurate affordability calculation. For example, their mortgage/rental payments or other bills (e.g. Electricity, Gas, Water, Council Tax). This list is not exhaustive.

Try our mortgage calculator Open in new window

Frequently asked questions

Is a Family-Backed mortgage the same as a guarantor mortgage?

No, a guarantor mortgage is designed that the additional person (guarantor) only steps in to meet the monthly mortgage payments when the borrower (owner) can't afford to pay them. With a Family-Backed mortgage the non-owner is jointly responsible for making the mortgage payments from the start.

Does the non-owner have to be a family member?

To be a non-owner on a NatWest Family-Backed mortgage your customer doesn't need to be a family member. If they have a friend who would like to help them buy their next home, then a NatWest Family-Backed mortgage could be their answer.

Does my customer need to be a first-time buyer to get a Family-Backed mortgage?

No, they don't have to be buying a home for the first time to apply for a Family-Backed mortgage, they could be buying their next home.