Home and Housing

Parents: Here is How You Can Help Your Kids Get on the Property Ladder

Getting on the property ladder is tough for anyone. But, for our kids, it can be even more difficult. The banks are less willing to lend. But, kids don’t seem to be able to get the high deposits that are required. In steps Super Parents! There are some great ways that you can ensure that your kids are not stuck in the renting trap.


Of course, it may be difficult for you to buy them a house (they wish!). But there are some great tips and advice that you can use to help your offspring get on the first step of the property ladder.


Here is how mum and dad can come to the rescue when it comes to property and mortgage matters.




Gifting your kids the deposit is a popular way for many parents to help their brood. Many banks will accept gifting from close family members too. As long as the money can be traced a mortgage provider will allow gifts to be made. Do ensure that you provide your children with a letter stating that the money that has been given is a gift from you. After all, they will need proof of how they obtained the money.


Guarantor Mortgage


One of the best ways to help your children is to help them get a guarantor mortgage. This means that you will sign against the house in case there is a shortfall. Typically, these are only given under special circumstances. These usually include if your child is moving into a better-paid job, but they are yet to receive the financial benefits immediately. This means that if your child falls behind with the mortgage, you are responsible for the repayments. A guarantor mortgage is a leap of faith, but if you have the confidence in your child to be a responsible lender, this is a failsafe way of guaranteeing your kids don’t have to rent forever.


Using Your Property as Collateral


This option may leave some parents feeling uneasy, but this is an excellent way to help your kids out. Of course, you should always make sure that you carry out home reports for properties in and around Elgin so that you are not faced with further financial implications.


The popularity of using your collateral is rather innovative. This means that you are allowing your children to use your property as a safeguard should they fall behind with payments. Of course, this is a significant leap of faith, so do seek out legal advice prior to taking out this kind of loan. Usually, a parent will have to use 65% of their total mortgage worth to protect their child’s property. This can be a useful option for many. For many, this is an excellent way to support the kids if you don’t have the assets or money to give to them.


For parents, watching your child rent can be disheartening. You can ensure that they have the best start in their financial future in many different innovative ways.



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