UK
Ireland
Scotland
London
Construction News
25/11/2013
Look Beyond 'Help To Buy' - Which?
Many first-time buyers are still relying on financial assistance to fulfil their property ownership aspirations and Which? is encouraging parents thinking of helping their children to consider the full range of options available.
While Help to Buy has grabbed the headlines, Which? research found that specialist mortgages aimed at parents helping their children to buy their first home such as guarantor mortgages and family deposit mortgages are alternatives worth considering.
More than 1,200 Which? members were polled and a quarter had helped their children onto the property ladder, while 7% intend to in the near future. Of those that assisted their offspring, two-thirds of those had given their children money to use as a deposit, while one in five lent them the money. Another one in ten stood as guarantor for the mortgage and 4% took out a joint mortgage.
Gifting or lending the deposit amount may be the most straightforward option available to those wanting to help their offspring on to the property ladder, but not all parents have the cash to spare.
There are various types of guarantor mortgages, but some allow parents to put their own property up as security, allowing lenders to advance 95% loans where they would otherwise require a larger deposit. Which?’s research identified home loans from National Counties Building Society, Bath Building Society and Aldermore as potential solutions.
Family deposit mortgages allow parents to offset their savings against their children's deposit. This parental contribution is held as security in a deposit account with the lender, but still gathers interest and is returned if their children’s mortgage triggers certain events. Lloyds TSB's Lend a Hand mortgage is perhaps the most well-known of these, but Market Harborough Building Society's Family Deposit product and Woolwich/Barclays' Springboard home loan are also worth bearing in mind.
Although the research testifies to the sense of satisfaction Which? members gained from helping their children – three-quarters of those who did said they would recommend others doing the same – there are pros and cons of all the different options which is why it is worth talking them through with an independent adviser.
(CD/MH)
While Help to Buy has grabbed the headlines, Which? research found that specialist mortgages aimed at parents helping their children to buy their first home such as guarantor mortgages and family deposit mortgages are alternatives worth considering.
More than 1,200 Which? members were polled and a quarter had helped their children onto the property ladder, while 7% intend to in the near future. Of those that assisted their offspring, two-thirds of those had given their children money to use as a deposit, while one in five lent them the money. Another one in ten stood as guarantor for the mortgage and 4% took out a joint mortgage.
-- Advertisement --
Gifting or lending the deposit amount may be the most straightforward option available to those wanting to help their offspring on to the property ladder, but not all parents have the cash to spare.
There are various types of guarantor mortgages, but some allow parents to put their own property up as security, allowing lenders to advance 95% loans where they would otherwise require a larger deposit. Which?’s research identified home loans from National Counties Building Society, Bath Building Society and Aldermore as potential solutions.
Family deposit mortgages allow parents to offset their savings against their children's deposit. This parental contribution is held as security in a deposit account with the lender, but still gathers interest and is returned if their children’s mortgage triggers certain events. Lloyds TSB's Lend a Hand mortgage is perhaps the most well-known of these, but Market Harborough Building Society's Family Deposit product and Woolwich/Barclays' Springboard home loan are also worth bearing in mind.
Although the research testifies to the sense of satisfaction Which? members gained from helping their children – three-quarters of those who did said they would recommend others doing the same – there are pros and cons of all the different options which is why it is worth talking them through with an independent adviser.
(CD/MH)
Latest Construction News
29/01/2025
Caddick Construction has been awarded a £43 million contract to deliver the first phase of Cole Waterhouse's flagship regeneration scheme in Digbeth, Birmingham.
The project, known as Upper Trinity Street, marks a significant step in the area’s transformation.
Spanning 182,986 square feet, the re
29/01/2025
McLaren Construction has been appointed by O&H Properties to deliver the first phase of a £60 million Foster & Partners-designed development at the corner of New Bond Street and Grafton Street in London’s West End.
The seven-storey, 5,400 square metre prime retail and office scheme will feature ret
29/01/2025
GMI Construction Group has been awarded a contract to develop three high-specification warehouse units totalling over 175,000 square feet at Precedent Drive, Milton Keynes.
The £20 million project, commissioned by DV5 Last Mile Developments (UK) Ltd, a joint venture between Coltham and Delancey Re
29/01/2025
Plans for 106 sustainable new homes in Southville, a neighbourhood in South Bristol, have been approved as the city seeks to increase housing delivery to address growing demand.
Top 10 award-winning housebuilder The Hill Group will create a £60 million development on Raleigh Road, on land that was
29/01/2025
Bouygues UK has reached a major milestone in the fourth phase of the Hallsville Quarter regeneration project in Canning Town, London.
The project, part of the £3.7 billion Canning Town and Custom House Regeneration Programme, recently held a topping out ceremony, marking the completion of the 11-s
29/01/2025
Willmott Dixon Interiors is carrying out a significant upgrade to the roof of the National Maritime Museum in Greenwich, one of London's most iconic cultural landmarks.
As part of the £12 million project, the company is installing over 23,000 square feet of sun-protected glazing above the museum’s
29/01/2025
Equans has been appointed by Babergh and Mid Suffolk District Councils to carry out crucial decarbonisation work across the councils' housing stock, using funding secured through the Social Housing Decarbonisation Fund (SHDF).
The councils used the South East Consortium's Zero Carbon Framework to s
29/01/2025
In the world of construction, the quest for energy efficiency and sustainability is ever-evolving. Among the array of solutions available, EPS (Expanded Polystyrene) insulation stands out as a versatile and effective option for enhancing the thermal performance of buildings, particularly when used f
29/01/2025
BCP Council has completed significant coastal protection works at Hamworthy Park, ensuring its resilience against erosion for the next 20 years.
A 200-metre stretch of sea wall along the eastern promenade has been reinforced using low-carbon concrete, while new steps have been constructed to improv
29/01/2025
Geo-environmental consultancy and remediation contractor, The LK Group, has strengthened its team with a trio of recruits.
The multidisciplinary company's latest raft of hires comprises a new director, associate director and remediation manager.
The geo-environmental specialist, headquartered i
