Parental Help/Guarantor Mortgages
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Can I get help from my parents with my first mortgage?
The increasing costs of the UK housing market can make it difficult for young people to get that first foot on the property ladder. With this in mind, some lenders are beginning to offer innovative mortgage products that make it possible for you to get the help of your parents.
With Parental Help mortgages, your purchasing power as a First Time Buyer can be boosted by taking into account the income and affordability of your parents. The lenders will take into account both the parents' and the applicant's income and also take into account any outstanding mortgage commitment in the parents' name for affordability purposes.
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This is a good method for parents who wish to help their children but are reluctant to liquidate investments or who do not have access to immediate funds for a deposit.
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Some lenders offer the choice of whether parents can appear on the title deeds of the property or not. So, both the parent and the first time buyer can appear on the mortgage but only the first time buyer need appear on the title deeds. The advantage is that parents can help as they wish and the first time buyer gains independent ownership.
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Our advisers have experience of all Parental Help mortgages in the market place and will happily meet with you and your parents to run through the various options and ascertain if an affordability boost is possible.
Another choice for First Time Buyers is the Guarantor Mortgage. This can be used if the mortgage required is bigger than the lenders income multipliers would typically allow.
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A guarantor would need to be a parent or close family relative according to the lender's requirements.
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The guarantor would be jointly liable for the mortgage and will therefore share responsibilities, should the mortgage slip into arrears.
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Even with a guarantor offering to support the mortgage applicant, a lender will want to know that the mortgage is serviceable for the applicant alone and they will look at factors such as credit commitments; occupation; career development potential before granting a guarantor mortgage.
We can take you through these options and work out which one might be best for you. For more information please call our freephone number of complete our express enquiry form.
Your home may be repossessed if you do not keep up repayments on your mortgage
For mortgages you can choose how we are paid: pay a fee, usually £750, or we can accept commission from the lender.
