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 (
) ( Check with a mortgage advisor). Parents may also act as guarantors or place money into a savings account to secure a higher percentage mortgage - even up to 100%.
Advantages of Mortgages with Parents
In the case of the combined 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
, require the parent's name to be on the property deeds, which could result in CGT liabilities.
Lenders specialising in Mortgages with Parents
These have been thin on the ground until recently but now lenders recognise that involving parents some way or another is becoming for many, the only way forward. More and more lenders are coming up with schemes
- 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