subject: Getting onto the Property Ladder: How to Raise a Deposit [print this page] Getting onto the Property Ladder: How to Raise a Deposit
An increasing number of people looking to get onto the property ladder are finding that raising enough money to fund the deposit is becoming more and more difficult. Finding 25% or more could take a lifetime of saving, and with more and more people living pay packet to pay packet, it makes you wonder whether there will actually be a next generation of home buyers.
Are your kids in this position? If you want to help them onto the property ladder and see them get a good start in life, there is a way if you own your own home and are aged over 55 and that is via a lifetime mortgage or home reversion plan, both types ofequity release.
Helping the Kids withEquity Release
Equity released is tax free and can be given to the kids or grandkids as a deposit towards their home purchase. Geoff Charles of Bower Mortgage Company says he has seen a steady rise in the amount of people taking this option.
"Seekingwhole of market mortgage advice is the right course of action for first time buyers, but without a deposit potential homeowners cannot get their foot on the property ladder. However, recently more and more parents or relatives are releasing equity from their own homes to help out their kids. By doing so, their children can get their hands on the deposit, and can then with helpful mortgage advice get a mortgage deal that is right for them."
If you have children who are stuck at home or renting who wish to get a place of their own, you may wish to consider aUK equity release scheme as a viable option to get them their deposit,but be sure to take advice from a specialist, qualified equity release adviser.
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.
