First Time Buyers Mortgages
Mortgages with Parents
How Mortgages with Parents work
Using your
parents' salary or pension to boost income multiples This deal offers an income
multiple of up to four times salary or up to four times the parent's salary after their
existing mortgage repayments have been deducted. Alternatively, the bank will
lend 2.75 times the parent and child's income combined. The deal may be
available up to 100% of the value of the property (
LTV
) ( Check with a mortgage advisor).
Advantages of Mortgages with Parents
The
mortgage is written in both names but – as it is only secured on the child's
property – the parent's home is not at risk. In addition the property deeds
only need to feature the child's name so the parent will not incur Capital
Gains Tax (CGT) liabilities when the property is sold.
Disadvantages of Mortgages with
Parents
There are
often age restrictions for parents and, as the age of the first-time buyer
increases, more parents are retired. Some deals, like that from the
Chelsea
, require the parent's name to be on
the property deeds, which could result in CGT liabilities.
Lenders specialising in Mortgages
with Parents
1st start
from Bank of Ireland
Helping
Hand mortgage from Chelsea BS.
Lend a Hand
mortgage from Norwich & Peterborough BS. Mortgages have changed alot recently though - check with a mortgage advisor.
Mortgages with Parents Mortgage
Advice
You may
want to invite your parents to get involved – in any event you will need to
start out by seeking mortgage advice yourself. Your advisor will also help you
look at guarantor mortgages and other solutions involving parents. Contact a mortgage advisor to discuss the wider situaiton.
Features, advantages and disavantages of specific first time buyer mortgages:
100% Mortgages l Cashback Mortgages l High LTV Mortgages l Professional Mortgages l Mortgages with Parents l Guarantor Mortgages l Family Offset Mortgages l Mortgages with Friends or Family l Mortgages at University l Rent a Room Mortgages l Affordable Mortgages l Interest only Mortgages l Part Repayment Part Interest Mortgages l Interest-free Start Mortgages l Shared Ownership Mortgages l Poor, Adverse or Poor Credit Mortgages l Key Worker Mortgages l Shared Equity Mortgages l 30, 35, 40 Year Term Mortgages