When it comes to helping your children onto the property ladder, its always been the same. Gift them some money. 
 
What does that mean? Well it means you don’t see it again! 
 
What if there was a way to help them onto the property ladder without the cash? Cash that can be more helpful elsewhere? 
 
What about if we can arrange for a lender to put a charge on your home in the same amount that you wanted to gift them? More even… 
 
As long as you or your child has ONLY 5% deposit, this lender will then consider a 20% charge on the equity in your house which, as long as you don’t sell or default on the mortgage in the next 10 years, they take away the charge and its gone! 
 
Your child will then benefit from being able to get on the ladder, using your home as a stepping stone. They will also be offered a beneficial rate, lowering their monthly payments. 
 
Lets look at an example from the lender: 
 
Value: £150,000 
 
Mr Wilson is 55 years old and earns a reasonable income as a teacher. His step-daughter Christine has recently graduated from university and he'd like to help her buy her first home. However, he doesn’t have savings to spare. 
 
Christine has saved £7,500 - a 5% deposit toward buying the flat she’s chosen and wants to borrow £142,500. George can’t spare any cash but he does own his home. 
 
The lender allows George to use some of the value of his home as security for Christine's mortgage. By doing this he can help Christine get a more favourable interest rate than she’d otherwise be able to get. George isn’t using the whole value of his home as security, just the £30,000 needed to secure Christine a better interest rate. Assuming Christine keeps her mortgage up to date, the charge on George’s property comes to an end after 10 years. 
 
If you would like to have a conversation about this, please get in touch. 
 
Austyn Johnson 
austyn@hdconsultants.net 
07500 871 209 
Tagged as: family, mortgage, support
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