Best Mortgage Options for Growing Families

It’s a fact – raising a family comes with increasing financial pressure, especially when your home no longer meets your growing needs. Whether you’re expecting a new arrival, looking to move closer to schools, or are simply running out of space, finding the right mortgage for a growing family is essential.

But which mortgage is best for a growing family?

From fixed and variable rates to unique and flexible product features, there are a wide range of mortgage options that can help support your long-term goals, protect your monthly budget, and even make the most of family savings.

In this article, we dive into everything you need to know about securing a mortgage with a family. From   exploring current rates and smart timing strategies, to expert tips on how to get mortgage-ready. Let’s jump in.

What Are the Current Mortgage Rates for Families in the UK?

If you’re managing the added financial responsibility of a family and are planning to buy a home or remortgage, understanding what deals are available and which lenders provide the best rates is a crucial first step.

In reality, the mortgage market is constantly changing, influenced by interest rate decisions, lender appetite, and wider economic conditions. Because of this, it’s impossible at one given time to provide a one-size-fits-all answer to the question, “what are the current mortgage rates for families?”

Rates can vary significantly depending on your deposit size, income, credit profile, and even the type of property you’re buying. This is why working with a trusted mortgage broker – like Boon Brokers – can help assess your specific financial situation and needs, matching you with the lender who is offering the most competitive products on the market at that time.

That being said, Nationwide current mortgage rates, for example, can often be a competitive option for family buyers, especially with larger deposits. Similarly, Santander current mortgage rates can include fixed or tracker options that provide flexibility for households looking for long-term stability.

It is also worth noting that for families buying their first home, there are current first-time buyer mortgage rates that may include incentives such as cashback, lower fees, or reduced deposit requirements, depending on your chosen lender.

At Boon Brokers, our whole-of-market access allows us to compare mortgage products and rates across a wide-range of lenders,  including high-street banks and more specialist providers. Our dedicated mortgage advisers will take the time to understand your circumstances, matching you to the mortgage product that fits your family’s needs.

Which Mortgage Option Is Best for a Growing Family?

Choosing the right mortgage deal for your family will wholly depend on your current financial profile and future needs. Whether you require a more predictable repayment plan, flexibility on lending, or ways to repay your mortgage early.

Here are the most common mortgage types for families:

Fixed-Rate Mortgage

A fixed-rate mortgage is a mortgage product that remains at the same interest rate for the agreed upon fixed-rate period. For example, a two-year fixed rate mortgage will have the same interest rate for 2 years.

This type of mortgage product is ideal for those looking to budget their finances with greater accuracy – especially if your household has a low level of disposable income.

Generally, fixed-rate terms will usually be offered to last 2, 5 or 10 years.

Tracker Mortgage

Tracker mortgages follow the Bank of England (BOE) base rate, plus a set percentage agreed with your lender. As such, your monthly payments will rise and fall in line with any changes to the BOE base rate.

Tracker deals can offer lower or no early repayment charges. This provides a higher degree of flexibility and can make them a good option for borrowers who expect rates to fall or whose income is expected to gradually increase over time.

Standard Variable Rate Mortgage (SVR)

A standard variable rate mortgage (SVR) is set by the lender and can change at their discretion. Crucially, the rate is not strictly based on the Bank of England rate.

These rates are usually higher than your introductory fixed or tracker deals, and are typically the default rate that borrowers transition to after a fixed term ends.

While SVR can offer flexibility with overpayments or exit without penalties, the lack of predictability and often higher interest may not suit all families.

For most borrowers nearing the end of their fixed-term mortgage, remortgaging is an ideal way to avoid the lender’s standard variable rate (SVR) and reduce overall monthly repayments.

Offset Mortgage

An Offset Mortgage links the borrower’s savings to their mortgage balance, helping to reduce the amount of interest paid. Instead of earning interest on the savings, the linked amount is offset against the outstanding mortgage balance, meaning interest is only charged on the difference.

This setup can significantly lower monthly repayments and total interest paid over the life of the loan. Offset mortgages offer a flexible way to manage your finances, especially if you have savings you’d like to keep accessible, while still reducing mortgage costs.

Flexible Mortgage

A flexible mortgage is a specific mortgage type that allows you to make overpayments, take payment holidays, or underpay during tougher months. As the name would suggest, these mortgages are ideal for those looking for flexibility in their repayment options – specifically for families whose income might fluctuate or who want to pay off the mortgage faster when possible.

Family Springboard Mortgage

A Family Springboard Mortgage is a product designed for buyers who have a small or no deposit, but strong financial support from family or friends. In this arrangement, a relative places cash into a security savings account (usually 5–10% of the property price), which acts as collateral for the mortgage.

Unlike offset mortgages, the savings in a springboard mortgage will not reduce interest directly, but instead allow the buyer to access up to 100% loan-to-value borrowing. After a fixed period, the funds are returned – with interest – as long as mortgage repayments have been made on time.

Some springboard-style mortgages also allow family members to use equity in their own property as security instead of cash.

Should I Fix My Mortgage for 2 Years or 5 Years?

One of the most common questions we get asked here at Boon Brokers: “Is it better to fix my mortgage rate for 2 years or 5 years?”

In reality, whether you choose a 2 year fixed-rate mortgage or to lock in a 5 year fixed-rate mortgage will wholly depend on your future plans and risk assessment.

In a normal mortgage market and as a general rule of thumb, our experts advise that:

• A 2-year fixed-rate mortgage deal will typically have lower rates and is ideal if you either expect to move or sell soon, or think that interest rates might drop in the foreseeable future.
• A 5-year fixed mortgage provides long-term stability, which is valuable if you’re planning to stay put and want to avoid surprises.

We have created a table below to illustrate the difference between a 2-year fixed-rate mortgage and a 5-year fixed-rate mortgage.

It is important to remember that when a fixed-rate deal ends, your mortgage will usually transition onto the lender’s standard variable rate mortgage, which can be significantly more expensive.

To avoid this sudden increase in monthly payments, it’s essential to start exploring remortgage options before your fixed-rate expires. By remortgaging to a new deal, you can often secure a more competitive interest rate and continue saving money over the long term.

Please note: This guidance is for general information purposes only and does not include personalised financial advice. Mortgage suitability will depend on your personal financial profile and goals for the future.

At Boon Brokers, our dedicated mortgage experts provide fee-free advice tailored to your individual needs. With whole-of-market access, we compare a wide range of mortgage products across multiple lenders to help you secure the most competitive deal for your circumstances.

When Will Interest Rates Fall Again?

When it comes to interest rates, our dedicated advisers are asked the same three questions almost every day:

• When will interest rates drop again?
• Should I wait before applying?
• Has the interest rate dropped recently?

In reality, no one can say with absolute certainty when interest rates will rise or fall. This is because they depend on a wide-range of complex and ever-changing economic factors like inflation, global markets, and government policy.

At Boon Brokers, our dedicated experts live and breathe interest rates and mortgage products. We are constantly monitoring the mortgage market and are best placed to offer the most up-to-date guidance on current trends and mortgage products.

Whether rates are rising, falling, or holding steady, we can help advise you on your mortgage journey,  finding you the most suitable mortgage product that matches your financial requirements. This may include exploring options like family offset mortgages, fixed-rate mortgages, or flexible mortgages that offer added control in uncertain times.

Should I Lock in a Fixed Rate Before Interest Drop?

Whether or not you should lock in a fixed-rate mortgage will depend entirely on the time of your application and what is happening with interest rates at the time. Importantly, your mortgage deal should always align with your personal and financial circumstances.

As such, it’s essential to speak with a trusted and regulated mortgage adviser – like Boon Brokers –  who can provide tailored advice based on your financial goals and market conditions.

At Boon Brokers, our dedicated advisers will always advise clients to act early and secure a mortgage rate where possible. The reason for this are twofold:

1. Should interest rates rise, and you haven’t locked in a deal, you won’t be protected. As a result,  any future deal you apply for will be based on those higher rates, meaning your monthly repayments could end up being much more expensive, and you’ll have no way to access the cheaper rate that was available before the increase.
2. Should interest rates fall after you have secured a mortgage offer, our mortgage advisers can often contact the lender directly to amend and update your mortgage offer to reflect the drop in interest, securing you a better deal.

In short: securing a mortgage offer earlier on the current interest rates will help protect you either way.

Many lenders also allow you to secure a rate up to six months in advance, so even if you’re not quite ready to move or remortgage, you can still lock in a competitive product now.

Working with Boon Brokers will help you explore a range of mortgage options, from fixed and tracker mortgages to flexible or offset deals, we’ll cover all the options available to you that best match your family’s financial needs now and for the future.

What’s the Smartest Mortgage Move for Families?

There’s no one-size-fits-all answer. The smartest move will always be to seek tailored advice from a trusted, FCA-regulated mortgage broker who can help you make the right decision based on your family’s individual circumstances.

With that said, here we’ve created a general overview of the 5 best steps that can help guide you to the smartest mortgage move:

1. Plan Long-Term

When choosing a mortgage, it’s important to understand the long-term implications – both financial and practical. Consider how your needs might change over the next five to ten years by asking yourself:

Will you need more bedrooms? Are you planning to grow your family? Could your household income change?

Thinking ahead helps you choose a mortgage that can grow with you and your family.

2. Decide on Your Priorities

It’s important to decide on what is most important to you – what do you want to get out of your mortgage. Is paying off the overall mortgage quickly a priority? Are you looking for a reliable repayment structure?

Let’s take an example of a borrower who is looking to secure a mortgage, start a family, and who is prioritising a clear repayment plan.

In this scenario, a fixed-rate mortgage could be the best route to remove any financial uncertainty. With a fixed-rate mortgage, you will know exactly what your monthly payment will be, which is crucial when raising children or managing fluctuating expenses.

3. Use Family Support Wisely

If you’re in the fortunate position whereby parents or relatives want to help you achieve homeownership, exploring options like a family springboard mortgage or a family mortgage loan could let them do so without giving away their savings.

While this can be a perfect match for some to unlock better rates or avoid costly insurance premiums, it is always advised to discuss all of your options with a trusted mortgage broker.

4. Consider Remortgaging Instead of Moving

If you’re already a homeowner and are thinking about moving to increase your space, it can sometimes make more financial and practical sense to stay put and improve your current home rather than move.

In the scenario you’re looking to create more space or upgrade your living environment, remortgaging can be a smart way to fund home improvements, such as extensions, loft conversions, or modernising key areas like the kitchen or bathroom.

This approach can help you add value to your property without the added stress, legal fees, and moving costs that come with buying a new home.

5. Work with a Trusted Broker

Making the right mortgage decision can be challenging, especially when you’re balancing the needs of a growing family.

At Boon Brokers, we understand the unique challenges families face when securing the right mortgage. With whole-of-market access, we compare hundreds of mortgage products across a wide range of lenders to find the best deals that are on the market today. Our team of fully regulated experts offers fee-free, personalised advice tailored to your specific needs.

How Can I Get Ready to Buy or Remortgage as a Family?

Here are the essential steps to prepare:

1. Check your credit score and address any issues early

Your credit score can play a pivotal role in your mortgage application process. By requesting a soft credit report in advance can provide you the opportunity to resolve any errors or outstanding debts.

There are three main credit reference agencies in the UK that you can request your personal credit check from: Experian, Equifax, and TransUnion.

2. Review your current mortgage to understand terms and exit fees

Before making any decisions, carefully review the terms of your mortgage offer or existing mortgage, including any early repayment charges or exit fees.

This helps you create a clear financial plan, schedule your remortgage effectively, and avoid any unexpected costs.

3. Explore the best mortgage deals for remortgage or purchase

The mortgage market is constantly changing, with new and improved mortgage products that might match your exact needs, and so it’s important to understand all the options that are available to you.

Working with a trusted mortgage broker can streamline the entire process. At Boon Brokers, our whole-of-market access enables us to compare mortgage products from both high-street banks and specialist lenders. Our dedicated advisers work closely with you to identify and secure the best mortgage options tailored to your family’s needs.

4. Understand your budget with accurate affordability calculations

Work out a realistic budget based on your household income, outgoings, and future financial plans.

While your chosen lender will complete their own specific affordability calculations, ensuring that you create a personal financial plan can help you avoid overextending yourself and identify what mortgage size is financially manageable long term.

5. Find out how long it takes to remortgage

The typical timeline for a remortgage can take between 4 and 8 weeks from application to completion.

Knowing this timeline helps you plan your finances and coordinate with any property transactions or home improvements. Additionally, working with a trusted mortgage broker can help streamline your application, helping you find the best deals.

Is It Worth Using a Broker Right Now?

Yes – now more than ever, using a mortgage broker can help you secure the absolute best mortgage product, tailored to your circumstances.

The mortgage market is complex. Interest rates continue to fluctuate and lenders are consistently introducing new and improved innovative mortgage products in an effort to stay competitive.

By working with a whole-of-market and FCA-regulated mortgage broker – like Boon Brokers – you gain access to a broad panel of lenders, including both major high-street banks and specialist providers. This means you’re not limited to a small selection of products; instead, you can choose from a wide range of competitive mortgage deals that suit your unique financial situation.

Backed by industry expertise, our dedicated mortgage advisers offer fee-free, personalised guidance throughout the entire process. From the initial consultation and affordability checks to securing a mortgage offer and handling the paperwork, we’re here to make the journey smooth, stress-free, and tailored to your needs.

In short: working with a trusted mortgage broker can help you save you money, reduce stress, and help you access products you may not find on your own.

What Should I Look for in a Mortgage Adviser for My Family?

Choosing the right mortgage adviser can make all the difference when buying or remortgaging as a family, and it’s important to know what to look for. To ensure you’re in the best hands, make sure your mortgage broker:

• Is fully FCA regulated
• Has strong reviews on reputable platforms like Trustpilot or Google Reviews
• Offers transparent or fee-free advice, with no hidden charges
• Has experience with family-focused mortgage products
• Provides impartial, whole-of-market advice, not tied to a single lender

At Boon Brokers, we tick every box. We’re fully FCA-regulated and offer impartial, whole-of-market, fee-free mortgage advice that serve your needs.

Our expert advisers have extensive experience working with families and understand the unique challenges that come with balancing affordability, space, and future planning.

Contact Boon Brokers today for expert, family-focused guidance from a dedicated mortgage adviser, and start your mortgage journey with confidence.