The Sun - BANK OF MUM AND DAD Little-known first-time buyer schemes to get help onto the property ladder from your family
Leah Milner and Olivia Marshall at The Sun report The Bank of Mum and Dad is set for one of its busiest years. Parents, grandparents and other relatives will be helping more than 318,000 buyers onto the property ladder this year.
JOINT BORROWER, SOLE PROPRIETOR MORTGAGES
Lots of lenders now offer so-called “joint borrower, sole proprietor” mortgages.
This is where parents or other trusted helpers go on to the mortgage to help buyers pass affordability checks, without actually becoming property owners. It means that the bank can take into account the parents’ or helpers’ income as well when deciding how much to lend.
LINKED SAVINGS ACCOUNT
Rather than handing over a cash gift towards a deposit, relatives can put money into a linked account where it is still their own money but it is held as a security in case the borrower defaults.
With the Lloyds Lend A Hand and BARCLAYS Family Springboard schemes, a “helper” sets aside ten per cent of the purchase price in a savings account with the bank.