Bank of Mum and Dad
You have probably heard of what is often referred to as the Bank of Mum and Dad stepping in to help their children get on the property ladder? But did you know this unusual `bank’ was reported to be the ninth-biggest lender in the country last year? That’s quite a surprise for many people.
However, it’s probably not news to you that many first-time buyers struggle with raising large enough deposits and meeting the regulatory affordability criteria of the lenders in the marketplace – therefore many are being helped by their parents using their own parental savings, liquidating bonds and releasing equity to gift deposits.
But… sometimes families who are desperate to help their children get their first home, simply don’t have these options and cash resources to dip into. So, what other options are left for them?
Have you ever considered Second Charge loan to release home equity instead of using cash savings?
Research has revealed that the Over-50’s in London account for 65% of owner-occupied housing wealth – that’s an astonishing amount of housing equity tied-up in bricks and mortar. This embedded equity is perfect to help with the first-time buyer problem.
So, if you or your relatives want to help, but simply don’t have the cash resources available – a Second Charge mortgage, also known as a Secured Loan, may be the perfect workaround and keep the entire family happy. Bank of Mum and Dad is able to help, whilst the next generation is able to get on the housing ladder with a gifted deposit.
With interest rates comparable to normal mortgage rates they can be a cost-effective way of borrowing. It is also perfect where you might already have an existing mortgage, particularly with high early-redemption penalties, or an attractive interest rate that you don’t want to lose.
As an additional benefit, they’re quick – usually a two to four-week completion average, but can be as little as days, therefore allowing plenty of time for `the kids’ to get sorted with a gifted-deposit mortgage.
Let us say “Yes, we can help” – Bank of Mum and Dad
Office Telephone: 01379 644061
Office Mobile: SMS, Text, WhatsApp, BBM or Viber, 07951 238527
THINK CAREFULLY BEFORE SECURING ANY LOAN AGAINST YOUR HOME