HomeOwners Alliance: Half of parents wish they could help kids buy a home
The Bank of Mum and Dad has been very busy in recent years as property prices have increased and mortgage affordability calculations have been tight for many first-time buyers.
More than half of parents with adult children have either helped or expect to help their children with financial support to buy a home. One in four parents also feels guilty about not being able to provide financial support. This is according to data from the HomeOwners Alliance.
There are schemes available to help parents get their adult kids on the property ladder without providing funds towards the deposit. Joint Borrower Sole Proprietor is one of the most popular ones as it allows parents to go on the mortgage application but not the title deeds. This helps them avoid paying the enhanced stamp duty for technically owing a second property.
There are Family Assist Mortgages, that offer low or no-deposit mortgages, although a charge is lodged against a family home to secure the mortgage.
Aaron Strutt, product director at Trinity Financial, says: "First-time buyers typically need a minimum deposit of five per cent to secure a mortgage, although a ten—or fifteen-per cent deposit is advisable. Skipton is still offering its 100% mortgage, which targets people renting a property."
Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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