When it comes to buying the very first home, many buyers turn to their mum and dad for help in London.
There are many ways parents can help their kids make better and safer property decisions. Parents have the experience and credit to support the initial step to the ladder of property buying.
Helping with the property selection
While the younger generation has all the resources to find statistics on the real estate market, parents can still make a huge difference.
For instance, a child may use street check apps and other tools to find and compare properties. But, if parents are involved in the research process, they can share their personal knowledge. They can help their children figure out the meaning of all the statistics available.
Helping with the mortgage
If you decide to help your kid with the mortgage, there are many options available.
You can become a guarantor of the mortgage debt. This means that you cover your child’s debt in case he or she misses repayments. Or, you can link your savings account with your child’s mortgage. This is called family offset mortgage.
If you have a property, you can put it as security for your kid to obtain a flexible family mortgage.
Pay the deposit or opt for joint ownership
Depending on what seems comfortable, you can help your kid with property buying using deposit gift or joint ownership.
With joint ownership, parents and children can have both their names on the property deeds and the mortgage. This way, the earnings and assets of your child are calculated together with your assets. Hence, obtaining a loan with a lower interest rate becomes easier.
Hopefully, this post has been informative to find ways to help your child purchase his or her first property.