Bank of Mum and Dad versus first-time buyer specialists

In today’s market, the gap between the income of first-time buyers and current house prices means that many people are struggling to get onto the property ladder.

A large number rely on support from their parents. In fact, at least two-thirds of those trying to buy their first home reported that they had to turn to their parents for help which, according to the National Housing Federation, is double that of five years ago.

A savings report from Lloyds Bank revealed that it was costing parents who stepped in to help on average £13,281 – a sum that not all parents can afford, which is where a lender who specialises in first-time buyers may be able to help.

This kind of lender generally provides alternatives to a parental cash deposit, by allowing the parents to use their own home as collateral, placing their savings with the said lender or even setting mortgage up jointly with their offspring.

This route does require consideration of potential implications. These lenders generally require parental security to fall back on in the event that the child does not maintain the repayments. If it was set up as a joint mortgage, then the family would need to ascertain who was responsible for the repayments.

Having undertaken your CeMAP training and passed the end exam, you will be able to work as a mortgage advisor. Your employer will determine the mortgages you are able to advise on, unless you are a self-employed mortgage broker.



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