Family mortgage solutions for each generations' ever-changing needs

This article was produced in partnership with Family Building Society.

If there’s one thing everyone can agree on, it’s that rarely does life go to plan. People may expect to buy their first home by 30, pay their home off or downsize before retirement, and see their own children off into the housing market on their own steam. For many, that’s not how things unfold — especially given today’s economic backdrop.

There’s an increasing need for stakeholders across the industry to think outside the box in providing solutions that meet the reality of today’s housing market. Family Building Society, for one, is eagerly answering that call. The difference the lender is making by doubling down on flexible, family-focused lending that caters to later life borrowers is considerable.

For example, recently a couple in their early 70s faced pressure from their mainstream lender to repay their mortgage, but they weren’t ready to move. Attached to their family home where they now hosted a revolving door of grandchildren who lived close by, it was unthinkable to pull up roots. 

Their broker brought them to Family Building Society, where a reverse joint borrower sole proprietor (JBSP) product allowed the team to factor in the daughters’ incomes alongside the parents’ retirement income. That provided the financial boost needed to secure a mortgage and keep the family together.

In another recent scenario, a young woman made it onto the property ladder thanks to the support of her mother, who had both a strong income and solid pensions heading into retirement. Family Building Society were able to offer a JBSP mortgage term stretching up to age 95 — over 30 years — keeping monthly payments manageable.

The message? Even if a client’s entering a later-life stage, they’re not out of options says Nathan Waller, business development manager at Family Building Society.

“There are routes to take, either for their own mortgage or to help loved ones with their mortgage,” he says. “That’s key. Just because someone’s about to put their feet up and relax in retirement doesn't mean that all of a sudden the options aren't there."

Understanding flexible, family-focused lending — and why it matters

Demand for family-focused mortgage solutions has surged as more people recognise these products as viable options — especially as traditional routes become less accessible due to rising living costs, tougher affordability criteria, and higher income requirements.

The pension landscape has changed dramatically, with more people now using drawdown or self-invested pensions, which require a flexible approach to assessing retirement income. The COVID era has also spread families across the country due to remote work possibilities, making these flexible solutions even more relevant.

Products like the JBSP mortgage allow family members to step in and help, whether it’s parents supporting children or, increasingly, adult children supporting parents into retirement. Multiple incomes can be included on the application to help with affordability, without the need to have supporters on the property title.

Family Building Society offers tiered loan-to-value (LTV) options, with products available up to 90% LTV to accommodate lower deposit borrowers, including first-time buyers. A key strength is the lender’s broad approach to income assessment. They consider pensions whether self-invested, private, or state as well as rental income, employed income up to age 75, and passive director income into retirement — as mentioned, up to age 95, a significant differentiator.

It allows for two affordability calculations: using employed income first and then switching to pension income to extend the mortgage term. This flexibility ensures more families can find solutions tailored to their unique circumstances.

“We are genuinely looking for ways that we can make home ownership more affordable and spread the load, so to speak,” explains Samuel Morrison, another BDM with Family Building Society, adding that they keep the product structure “as straightforward as possible.”

Simplicity. Accessibility. Education.

The lender’s focus is always on simplicity and accessibility. BDMs such as himself and Waller act as the go-between for intermediaries and the underwriting team to make the process streamlined, and Family Building Society always takes a human approach to risk.

The team prides itself on being able to help people who face limited support. Perhaps they missed a mortgage or credit card payment — or two — or discovered at the last minute they have a small parking fine on their record that they weren’t aware of. That’s where a lender like Family Building Society comes into play – helping those who have turned away from high street lenders.

“We don’t credit score, we credit check; we look at the whole client, the whole picture,” Morrison stresses. “Who hasn’t had some sort of life event at some point that set us back in some way? We really do want to be the ones who say yes.”

Morrison emphasises that education is at the heart of their approach to later life lending, and much of those efforts revolve around broker partners. The team is always ready to explain in detail the nuances of more niche areas like later life lending.

Waller agrees, noting that it’s their job to provide options and then it’s down to the client — in coordination with their trusted broker — to decide what’s best for them. The broker, therefore, must keep pace with the near-constant change of the mortgage world while identifying the types of cases that something like the JBSP product would be beneficial for.

“It’s busy, with lots of products and criteria changes on a regular basis, and it can be difficult to keep up. Get in touch with us,” Waller urges, adding that with clients, it boils down to honest conversations about intentions and plans.

If you have older clients, it’s not just what pensions or income is coming their way. Are they planning to give their children a large-sum deposit to help buy a property? Where are they drawing this money from? Pulling it from savings, investments, or pension pots can deplete resources and may trigger significant tax liabilities.

A JBSP, however, allows families to spread that debt across multiple income and monetises assets in a more efficient way. It’s an arrangement that, in the right situation, keeps more money in the parents’ pocket while providing a sustainable path to homeownership for the next generation.

“Don’t be scared to ask the questions; it’s part of a broker’s due diligence to give the best advice possible,” Waller sums up, noting that essentially, they’re here to redefine what’s possible for families at every stage of life.

Morrison adds that one of the great things about Family Building Society is that the BDM team are empowered to essentially pre-underwrite a case. And if the broker is new or hasn’t worked with the team before, “we hand-hold the case alongside them with one-to-one support.”

“It’s a bit of a cliché, but speaking to your BDM is worth its weight in gold. We’re genuinely there throughout the whole process, from the beginning to help them work out exactly what we can do and how we’ll calculate it, to fielding the call telling us there’s a delighted customer who’s just popped a bottle of champagne to celebrate.”