It has been in the news a lot recently that the bank of Mum and Dad are being kept pretty busy. As experienced IFA’s at Enable of Bishops Stortford we see a lot of first-time buyers relying on the bank of mum and dad to get them on the property ladder. They are not alone according to recent research, the financial assistance provided by parents helped 100,000 buyers get their first home between 2008 and 2011.
The report, by HSBC and the Centre for Economics & Business Research, estimated that without this help house sales worth £5.3bn would never have taken place. Before the credit crisis most first-time buyers were able to borrow 100pc of their property's value. Most lenders at the moment are asking for a 10pc deposit, so those who can afford to put down a larger deposit would qualify for a far wider range of mortgage deals at lower interest rates. So at Enable we are able to help parents or grandparents who want to help younger members of their family get on the property ladder to find the right deals and make significant savings for the family.
For parents who have enough savings to help their offspring but don't want simply to hand over a cheque, there are a number of mortgage schemes that can help. Lenders have also devised a number of products aimed at parents who want to help but don't have surplus funds sitting around. Enable’s experienced Independent Financial advisors can talk you through your options.
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