Are there dependent relative mortgages?

Answered on 6 February 2018


I am mortgage free (my house is valued at £765k). I would like to buy a 2 bed flat for my children. I have heard about a dependent relative mortgage. Is there such a thing and if so, who does them? Also, what criteria would I need to meet? 


Mortgages for dependent relatives

There are some lenders whom will consider this transaction and having an unencumbered main residence is a bonus as some lenders will not need to use the existing mortgage as a commitment when calculating affordability for the onward purchase.

As you are buying the property for your children to live in, then it will be bought either as a regulated buy-to-let, where you will have to disclose to the lender that it will be let to a relative or as a property for a dependent- the property must be in sole use for your children and not be let. This is because of the rules set out by the FCA on Regulated Mortgage Contract. As you do not have the intention of living there, this will not be classed as a second home.

It would be worth speaking to one of our consultants to look at the different mortgage options. Please call us on 0330 433 2927 or submit an enquiry and we'll arrange for one of them to contact you.

Ask The Mortgage Experts answers are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them. We recommend you seek professional advice with regard to any of these topics where appropriate.

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