While you may have plans to leave a legacy to your loved ones after you die, with careful planning, you may also be able to help your children or grandchildren onto the property ladder.

This kind of assistance is becoming increasingly common. Research reported by Today’s Wills and Probate found that annual financial gifts across the UK reached £17 billion in May 2026, with £9.6 billion going directly towards helping first-time buyers get onto the property ladder.

The research also found that property is the leading reason for family financial support, cited by 51% of people who have already gifted or loaned money.

If you’d like to help your children or grandchildren purchase a property, it’s vital to consider how you make the gift. The right choice may depend on your loved one’s circumstances, how much help they need, and whether you can afford to provide support without putting your own security at risk.

Keep reading to discover five ways you could help your loved ones get onto the property ladder.

1. Gift cash towards a deposit

One of the most straightforward options is to simply gift money towards a loved one’s deposit.

This could make it far easier for your child or grandchild to secure a mortgage, access a wider range of properties, or potentially benefit from a more competitive interest rate.

It’s important to note that lenders may require a gifted deposit letter confirming:

  • How much your loved one has received
  • Where the money has come from
  • That it doesn’t need to be repaid
  • That you won’t have any rights over the property.

If you do want the money repaid, the gift may need to be treated as a formal loan instead, which could make it harder for a lender to approve the mortgage.

You should also remember that, as of 2026/27, you can give away up to £3,000 each tax year using your annual exemption, and you can carry any unused allowance forward by one tax year.

Read more: How to efficiently structure your gifting strategy

Larger gifts may fall outside your estate if you survive for seven years after making them. If not, they may be subject to Inheritance Tax (IHT).

While gifting can be effective, it’s worth taking advice first. You should be confident that you won’t affect your own retirement plans, later-life care needs, and financial security.

2. Help them make the most of a Lifetime ISA

If your child or grandchild is still building their deposit, you might also want to consider helping them save into a Lifetime ISA (LISA).

In 2026/27, eligible savers can pay up to £4,000 into a LISA until age 50, provided they opened the account and made their first payment before turning 40.

Better yet, the government then adds a 25% bonus, amounting to a maximum of £1,000 a year.

Just be aware of the restrictions around a LISA. The money within can typically only be used to purchase a first home or to fund retirement at the age of 60.

Otherwise, your loved one could face a 25% early withdrawal charge, meaning they could get back less than they put in. What’s more, the property must cost £450,000 or less.

A LISA could be useful if your loved one is early in their savings efforts, but if they’re hoping to buy in an expensive area, it may not be the right option.

3. Consider a “joint borrower sole proprietor” mortgage

Even if your loved one has saved enough to afford the deposit, their income might not be high enough for a lender to offer the mortgage they need.

With a “joint borrower sole proprietor” (JBSP) mortgage, a parent or grandparent joins the application so their income can be considered during the affordability assessment.

The buyer remains the sole legal owner of the property, while the supporting borrower shares responsibility.

This can help first-time buyers who may be able to afford the repayments, but can’t borrow enough based on their income alone. It may also allow you to support a loved one without needing to gift a large lump sum.

Just remember that as a joint borrower, you would usually be responsible for the mortgage if your loved one couldn’t keep up with repayments.

This could affect your own borrowing capacity and create financial pressure if circumstances change unexpectedly.

As such, it’s vital to understand both your legal responsibilities and the effects a JBSP could have on your own financial plan before agreeing to one.

4. Look into a springboard mortgage

A springboard mortgage means your savings are used as security for the mortgage rather than handed over permanently.

For instance, a buyer could borrow the full purchase price of their home if you provide 10% as security for five years. You can then get the money back with interest, provided your loved one keeps up with mortgage payments.

This could appeal if you want to support a child or grandchild but don’t want to give away a large lump sum.

However, your savings will usually be locked away for a set period, meaning you might not be able to access them if you suddenly require the money.

Your loved one might also be able to take on a larger mortgage than they otherwise would, which means higher monthly repayments that they can’t necessarily afford.

5. Put money into a trust

If your grandchildren are still young and helping them onto the property ladder is a long-term goal, it might be worth setting money aside in a trust for them.

This allows you to set aside money for someone while placing rules around how and when they can use it.

This could be practical if you want money to go towards a future house deposit rather than become available for general spending.

There could also be IHT benefits depending on:

  • The type of trust
  • The amount you transfer
  • How long you live after setting it up.

This can make trusts useful, but they are often highly complex, so you should always seek professional advice before setting one up.

Get in touch

We can help you explore ways to support your loved ones while keeping your own long-term financial plans on track. While we don’t advise on mortgage products, we can refer you to mortgage specialists who do.

Email info@blueskyifas.co.uk or call us on 01189 876655 to find out more.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.

The Financial Conduct Authority does not regulate estate planning, tax planning, or trusts.