There’s no doubt that getting onto the property ladder is incredibly difficult, especially now with house prices on the rise. There are some great government-backed schemes out there to help first-time buyers and encourage more young people to buy property, but have you ever thought about looking a bit closer to home for help? If you have family members who already have a mortgage or a property, perhaps your parents or grandparents, there are a few ways that they might be able to help you!
Equity release is a way of accessing the value built up in a property in the form of a tax-free lump sum. If you have a family member who is over 55 years of age and who owns their property, this could be a great way for them to help you out that won’t cost them or affect their home-owner status. They can draw the equity out of the property and gift it to you as a deposit for your own home.
Joint Borrower Sole Proprietor Mortgage
In a nutshell, this is where you get a mortgage with a family member. They accept joint responsibility for the mortgage payments, but only you own the property. This is a great option if you are a single applicant and your income alone doesn’t allow you to borrow enough for a property.
If you have a family member who already has a mortgage, they may be able to borrow more against their property to help you put down a deposit. If they are able to find the right deal, this may not even affect their monthly repayments too much.