Q&A: Getting children on the property ladder
What is the best way to help my children get onto the property ladder?
This week's expert, Jonathon Hudson from Hudson Property in London suggests:
It's a fact of 21st century life that not only rocketing prices, but in London particularly, the lack of housing stock is making it very hard for people in the 18 to 30 age group to buy property. There are always the tried and tested methods such as buying with a friend, taking in a lodger, or buying under a shared ownership scheme but there are several ways in which parents can make home purchase more affordable for their children.They can, for example: buy a share of the property; pay part of their offspring's mortgage' borrow money; remortgage their property; or act as guarantors. Mortgage lenders with their finger on the pulse want to encourage first-time buyers, so the market is seeing some innovative products to help parents help out without necessarily giving up their savings or getting further into debt themselves. One such product adds the income of parents - as long as they're under 55 - to that of the first-time buyer when calculating the size of the mortgage available.
According to the product information it can take into account up to three incomes, and the term is linked to the young buyer's age - and as it can extend to 40 years the monthly repayments are easier. The best advice is to speak to a financial advisor who will have a wider view on the options available.
