- Salli Anstey
July is one of the most popular times of the year for getting married. Young brides being carried across the threshold of a new home, however, is not. In many cases, for struggling first-time buyers, the threshold is mum and dads.
At Private Wealth Mortgages, we have some flexible ways that allow family members to help first-time buyers get their feet firmly on the property ladder, whether that’s by helping with the deposit or with ongoing mortgage repayments. Plus, some excellent tips for making tying the knot with property count.
The ultimate wedding gift:
An option for first-time buyers struggling to save the minimum percentage needed for a property deposit is to receive a gifted deposit. This is a sum of money, normally provided by a family member, that forms all or part of the cash required for a deposit.
Another way family can help with the deposit is with a Flexible Family Mortgage. This allows a parent or family member to use some of the equity in their own property as security for their child’s mortgage. For example, 10% of the mortgage is secured against the parent’s property and the remaining is the responsibility of the child.
A Guarantor Mortgage is a good option for aspiring buyers who, may have financial circumstances that will discourage lenders. It allows family members who own their own property to use their income and credit levels to guarantee the mortgage debt.
Joint Ownership allows both the family member and child to jointly own a property with both names on the mortgage. The size of the loan will be based on the earnings and assets of both.
Family offset mortgages allow a parent, for example, to put their savings into an account linked to their child’s mortgage. The money in the savings account is then deducted from the mortgage, making the child’s repayments cheaper whilst still allowing them to have full rights to their property.
For better or for worse:
With the cost of simply getting on the property ladder in the first place so high, it’s an understandable temptation to give some of the add-ons suggested a miss. There are some things we’d advise not to skip, however, and that’s life insurance and income protection. With many of us only able to afford a mortgage with a partner, if the worst were to happen to one, without some form of protection cover, the other could be in serious financial strife keeping up repayments. Our expert advisers can help compare options in order to choose the best protection based on personal circumstances and finances.
Our team of friendly advisers specialise in providing mortgage guidance for whatever stage of life you are at, whatever your circumstances. For a FREE, no-obligation chat, give us a call today at Private Wealth Mortgages on 01403 270006 or email: info@privatewealthmortgages.co.uk.