September 29, 2022

Grab and Gather

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Mum and Dad – Increasingly Popular Choice for First Time Buyers

For first time buyers, one of the most increasingly popular ways to get on the property ladder is with the help of the good old bank of mum and dad. It is much more difficult in this day and age for people to get on the property ladder. The economic crisis in 2008 saw a huge rise in job losses and as unemployment soared and the economy contracted, buying a home for the first time became a distant dream for many would-be first-time buyers.

As well as this, we now have a new financial crisis looming over us – although the government furlough scheme did save many jobs and livelihoods, it was not possible to save everyone, and the fallout has been a huge rise in unemployment, and the economy contracting once again, with many people thinking we could be heading for the deepest recession in 300 years.

Despite all of this, many younger people are still getting the chance to own their first home – thanks to their parents. There are a few ways that parents can help out. They can take out what is known as joint borrower sole proprietor mortgages – this is where the mortgage is in both the parents and the child’s name, but the proprietor is only the child.

Another way that parents can help is by lending or giving money of their own to put down as a deposit. Many banks also offer what is known as a springboard mortgage – where parents put in some of the deposit or all of it, and then they get it back after a few years. For first time buyers, one of the most increasingly popular ways to get on the property ladder is with the help of the good old bank of mum and dad.

It is much more difficult in this day and age for people to get on the property ladder. The economic crisis in 2008 saw a huge rise in job losses and as unemployment soared and the economy contracted, buying a home for the first time became a distant dream for many would-be first-time buyers. Despite all of this, many younger people are still getting the chance to own their first home – thanks to their parents. There are a few ways that parents can help out. They can take out what is known as joint borrower sole proprietor mortgages – this is where the mortgage is in both the parents and the child’s name, but the proprietor is only the child.