Helping your children to become first time buyers in 202011-Dec-2019
By Philip H Yates, Consultant: Mortgages & Equity Release
This week I have been advising a couple of first-time buyers who did not have the funds available for a substantial deposit. One of the couple’s parents was willing to help financially, however they did not have access to the liquid funds (cash or savings which do not have a long lock up period – not the money for Christmas drinks), like a lot of people, their main asset is their home.
When advising on matters such as this I am reminded how our independence really sets us apart, and how valuable this is when researching the best schemes. It is this independence and experience which provides us with access to so many different mortgage products across so many different lenders.
We were able to support these clients as one of our mortgage lenders will allow purchasers to borrow up to 100% of the property value subject to their parents accepting a legal charge on their own property (equivalent to 20% of the value of the purchased property), negating the need for the liquid funds.
There was also an alternative option available to them which would have seen them invest 20% of the purchase price in a savings account with the mortgage lender, set against the purchase property.
This is a flexible scheme which is specifically designed for parents to help their children to get on the property ladder.
We also have access to a range of other schemes which are designed to assist first time buyers. As circumstances and requirements vary so much from client to client, we offer a free, no obligation initial meeting to understand your requirements and to explain the mortgage options available to you.
If you are interested in supporting your children with a home purchase, or if there is anything else you would like to discuss then please get in touch with our Independent Financial Services team on 01244 356 789 or email firstname.lastname@example.org
Please note: This article is provided for information only and must not be considered as legal or financial advice. We always recommend that you seek independent advice before making any financial decisions.