Friday, 12 January 2018 16:46

HELP BUYING YOUR CHILD’S FIRST HOME IN 2018

As a parent myself it scares the life out of me when it comes to helping my kids buy their fist home. After all, getting on the ladder is likely to need the help of a parent. Here are some helpful ways you can do this without incurring the extra 3% Stamp Duty levy;

As a parent myself it scares the life out of me when it comes to helping my kids buy their fist home. After all, getting on the ladder is likely to need the help of a parent. Here are some helpful ways you can do this without incurring the extra 3% Stamp Duty levy;

‘Joint borrower, sole proprietor’ mortgage
This option is whereby your child and one or both parents are on the mortgage. This will boost their borrowing potential, but the key thing is that only your child’s name appears on the title deeds! There are a handful of lenders who offer this type of mortgage.

‘Springboard’ mortgage
This allows your child to purchase without a deposit, provided someone else – normally a parent – puts 10% of the property value into a ‘Helpful Start’ savings account with the bank. After three years you will get this money back, along with interest, if your child meets their monthly payments.

Guarantor mortgage
Historically, this was very popular as it allows parental income to be considered, but there are now only a few products on offer but alas, still an option!

Beyond the high street
Some building societies can be ore flexible than say a mainstream bank! For example, there is a building society that has a mortgage allowing up to 12 family members to club together onto the mortgage to help the child.

Gifting the deposit
If you are gifting that’s great, but lenders are wary if it is repayable. Note the IHT rules mean that the donor must live for seven years otherwise IHT tax may be payable of up to 40% on the gift!

I hope this helps! For more information from one of our Independent Mortgage Specialists call on 0800 689 3173, email This email address is being protected from spambots. You need JavaScript enabled to view it. or go onto www.conranfinancial.co.uk


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