What is the family support/deposit mortgage?
The Family support mortgage is designed to allow families to raise funds from their existing property to help another family member buy a home.
This could be parents helping their children onto the property ladder but it is also available to help those moving to a new home as well as relatives looking to assist older parents.
The buyer receiving the funds must take out their own mortgage up to around 80% loan to value.
The average first time buyer deposit in the UK is around £28,000 rising to £65,000 in London. About 35% of first time buyers opt for a 30 year term and even more in order to spread the cost.
(Source: Council of Mortgage Lenders)
All of the additional monies raised must be provided as a fully gifted deposit. Those with no current mortgage on their homes, and those in receipt of retirement income, can also make use of the Family Deposit Mortgage to raise deposit funds.
Therefore, it provides a flexible and accessible way to use the wealth tied up in people’s homes in order to help not only first time buyers but also home movers to secure their own property.
Speak to a financial adviser and see if this method may work for you.