Providing a personal mortgage to child

TBeckett100

of course, you have to bear in mind a "boyfriend" will appear on the scene one day and they may want to sell and rebuy. You may not be a happy lender when you realise her boyfriend is a waster and if married, may be entitled to half of assets etc. Goodbye capital and retirement will be spent working in B&Q

Cannon_Fodder

Sounds like Lloyds "lend-a-hand" might fit the bill.

Keep your savings in your name, but use them to support her mortgage..?

She only needs a 5% deposit - which you could just give her, as you get to keep 20% with Lloyds and earn interest, and do what you like with the other 75%.

http://www.lloydstsb.com/mortgages/lend_a_hand.asp obviously read the Ts&Cs.

sonastin

Best advice speaking as a daughter who has gratefully made use of the bank of mum and dad several times...

Her best chance of being good with money is if she is responsible for managing it early on.

She should be saving for her own deposit if she wants to buy a house and taking responsibility for her future. If she is putting money aside, but isn't in a position to build a big enough deposit, then this is where you can step in to help out...

Lend her money to top up the deposit on whatever interest rate you are currently getting on that money in the bank. She can then get a decent mortgage rate which is appropriate to her financial circumstances and take responsibility for getting the right advice and choosing the right product. And she will have to face the consequences if she doesn't keep up the repayments. Would you really consider repossession if she (or potential future waster boyfriend!) frittered away her money instead of repaying your loan?

If she doesn't have the discipline to save for a deposit, and she doesn't have any understanding of the way banks and mortgages and credit works then she could end up in a real financial pickle when she is older and the bank of mum and dad isn't there to bail her out. But if she is heading in the right direction but not getting there as quickly as you would all like, there is no harm in giving her a push along the way

artha

Cannon_Fodder wrote: »

Sounds like Lloyds "lend-a-hand" might fit the bill.

Keep your savings in your name, but use them to support her mortgage..?

She only needs a 5% deposit - which you could just give her, as you get to keep 20% with Lloyds and earn interest, and do what you like with the other 75%.

http://www.lloydstsb.com/mortgages/lend_a_hand.asp obviously read the Ts&Cs.

Thanks. Yes that's something I've been looking at. I think we'll have no problems with Lloyds as we have quite a number of vantage accounts with them in the names of myself,OH and daughter. In fact the local branch manager phoned me recently to comment on the amount of money that moves through these accounts and wondered if they could help me utilise it. For what it's worth they told me a had a 1A rating in the way my money was managed and that entitled me to a substantial amount of credit/loans. Probably flannel but you never know.