Many parents would love to help their millennial children take out a mortgage and become first time homeowners. But most just cannot part with money earmarked for there own retirement. Now there are new solutions. The Post Office Family Link Mortgage which lets a first time buyer raise their 10% deposit against their relatives fully owned home. A cheaper option is a Barclays Springboard Mortgage where a family member deposits 10% of the price in a Helpful Start linked account. After three years, the money is returned. Or try the Post Office First Start Mortgage where your family sponsor’s income is taken into account, possibly increasing the money you can borrow. Today’s options make it much easier for millennials to become first time home owners and it is easier for parents to help.
Key Takeaways:
- First and best option: Borrow the money for a full deposit from family, if they have ample funds available
- Other flexible options exist that allow family to help, including: Post Office Family Link Mortgage, Barclay’s Springboard Mortgage, Post Office First Start Mortgage
- Check discount options: Sellers may pay stamp duty, offering funds to cover moving, transportation discounts and more
“The average millennial has just £3,359 in accessible savings. That’s less than a tenth of the £51,821 deposit put down by the average first-time buyer, according to the Office for National Statistics.”