Buying guide
5 ways your parents can help you buy a home
Property ladder feeling out of reach? Here's how your parents might be able to help.
4 July 2023
AI summary
Getting on the property ladder can be easier with help from the "bank of Mum and Dad."
Key ways parents can assist include:
- Gifting a deposit
- Providing a formal loan
- Acting as a guarantor
- Co-owning the property
It is vital for all parties to seek independent legal and financial advice to create formal agreements. This protects everyone’s interests, clarifies responsibilities, and ensures parents' retirement savings are not put at risk by the arrangement.
Here’s what you’ll learn:
You should seek reliable legal advice before committing anything.
1. Parents use equity in the family home
2. Parents make a loan to the children
Parents may use the family home as security against a loan.
3. Parents act as guarantor on the home loan
4. Parents offset part of a child’s mortgage
5. Co-owning with parents
Other things parents can do to help you on your way
In all cases, it is important to ask the tough questions up front.
Key questions for Mum and Dad before they take the next step
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