At Daniel Cobb we۪re always pleased to come across articles such as this one by Annabelle Williams of City AM - which explains the finance options available to parents helping children with their first property purchase.Research by Legal and General and the think tank CEBR has established that this year alone children taking their first steps on the property ladder will receive up to 5bn from parents. City AM, however, claims that families don۪t need to take such a big hit on their finances when helping with a property purchase.One of the innovative ideas suggested here is a Family Offset Mortgage, which allows parents to place a lump sum in a bank account, instead of handing it over in the form of a deposit for their child۪s house. After a set period, perhaps ten years or so, the money is returned to the parents, provided their child hasn۪t defaulted on the loan. Some lenders even offer interest on the sum deposited.Daniel Cobb is a family-run estate agency built on core family values and we۪re always happy to offer property advice to parents helping with their child۪s first home purchase. Call us today for a chat.
Unsurprisingly, well over a third of first-time buyers accepted help from parents, research from Barclays Bank shows. It said 20 per cent of those hand-outs were considered non-repayable, which puts a significant levy on parents۪ finances.
http://www.cityam.com/245396/get-your-children-property-ladder-five-best-options-bank
