Helping your children onto the property ladder
It was recently announced that the 100% mortgage was coming back… on one condition, that parents or guardians of the mortgage holders agree to be guarantors for the loan. Without the 100% mortgage the typical first time buyer has to have a deposit of 20%.
The average house in the UK is currently £166,256 meaning the deposit needed would be £33,251.20 a sum that many struggle to save for.
Parents are choosing to help their children onto the property ladder by assisting them with the deposit. Some parents are therefore remortgaging their own property in order to do this.
Many parents understand that their children will possibly never get onto the property ladder without their help and see their own involvement as the only way.
Lesley recently remortgaged in order to help her daughter onto the property ladder.
“I didn’t buy my first house until I was 34 years old. I didn’t want my daughter to have to go through what I did, I was in a position where I could release some equity with a remortgage and felt that this was the best thing for me to do to help her.”
This entry was posted on Friday, October 14th, 2011 at 2:01 pm and is filed under First Time Buyer, Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.