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WireGuard tunnel is exactly the right tool here, and the pi zero + external drive at a family member's house is a well-trodden pattern.
One thing to think about before anything else: the offsite end is the weakest link. A pi zero 2 W copying over an ext4 USB drive is fine, but make sure the drive is encrypted (LUKS) or the backups are encrypted client-side (borgbackup --encrypt with a repo key, or restic) — a household drive sitting in someone else's house should not be readable if it walks away. Since you already use borg, borg over SSH with repokey encryption covers that and gives you dedup + compression, which matters a lot over a home upload link.
Practical setup that works well:
One caveat with pi zero: it is slow at hashing/dedup. For incremental photo backups (a few GB at a time) it is fine, but expect the initial seed and any large catch-up run to take a while. If that hurts, a pi 4/5 with USB3 makes borg much happier.
Do not bother with a VPS for the bulk data — it just becomes an expensive relay. A VPS is only worth adding later as a small third copy for the most recent snapshots if you want 3-2-1 coverage without depending on one relative's internet.