Helping the kids

Tim2

My daughter is looking to buy a house and would like some help starting off.
Unfortunately I don't have any significant savings, just a fair amount of equity in the house.
Any suggestions as to what I can do to help her with her deposit.
Many thanks.

Tim.

ACG

Remortgage to release some equity in the property?

Tim2

I was hoping not to re-mortgage.
Would I be able to get a joint mortgage with her on a property, or maybe one where I was buying 20%. Then she could pay the mortgage and once there was enough equity in the house I could get taken off the mortgage.

Tim.

ACG

That is an option, but you would still need a minimum 10% deposit.

The only other way is a guarantor mortgage which you may be thinking of? Aldermore does 100% mortgages providing there is a guarantor for anything above 70%, they only deal with brokers so you would need to go and speak to an advisor about that deal. But you can see more info here - http://www.aldermore-mortgages.co.uk/images/stories/literature/ARM26-0611-300037.pdf

Other than that, there isnt too much else available.

iwantahome

My parents helped me by making me save my deposit myself.

I know this doesn't work for everyone, but it has given me a great sense of achievement and responsibility.

Brenster

iwantahome, Tim2 asked a question, he is doing a good thing to help his child get on the property ladder, and you can only see the negative in this ?

Yes Tim2 child is fortunate to have a parent who is able to give them a good start, but surely anyone who has the ability to help their child would do the same, there is no need to make such a negative comment.

Why so bitter>?

Tim2

iwantahome

My daughter has nothing to prove to me.
A few years ago when I was totally skint she worked 3 jobs to put herself through university and has, since then, made a real success of her life.
She has a better work ethic and is better motivated than anyone I know. She has nothing at all to learn about achievement and responsibility.
If I made her save the full deposit she would spend the next few years lining the pockets of some a**hole private landlord. If I help her a bit she can put that rent into her own property.

McKneff

Not until the last 5 years or so have we been able to give to our children, they are 44 and 39, they both have their own houses, albeit mortgaged and have families.
I take great delight in giving them sums of money now, not when Ive popped me clogs, Its lovely to see the delight on their faces, an experience that wouldnt happen if they were getting it out of my will.

If yo can help, and I mean help, and not do it all, I dont see why not.

Tim2

Exactly.
Our three had a pretty basic childhood. No games machines, TV's in rooms, designer trainers, foreign holidays.
They were never spoiled in any way.
They have all worked hard to get qualifications and good jobs.
I would rather see a few smiles when we can help out to make their lives a bit easier, than leave them money when I kick the bucket.
It has only been the last few years when we have been able to help them out financially.

whitewing

Why have you all taken iwantahome's post as a negative? It read to me as a positive suggestion/solution. Sometimes people get caught up in what they feel they should do.

iwantahome

Thanks whitewing, that is exactly what it was meant to be.

My parents are in a position to help me out financially, but why would I take their money from them? They have worked hard for that and I'd far rather they spent their hard earned money on holidays and nice things for themselves rather than miss out on those while I took the easy route. I have nothing to PROVE to my parents either, I do however enjoy proving that I can do things to myself.

Tim2 you said you have no significant savings to "give" to your daughter and that you didn't want to release equity in your house to "give" to her either. I presented a one solution to your problem, and as it was not the solution you wished to hear you have taken offence. Not all solutions in the world will go your way, thats something we all have to live with. Not all landlords are that bad either. There are positives in renting too, like not having to pay for maintenance of the property etc.

I wish you well in helping out your daughter and hope that a mortgage company can be found to give you the option that you want.


Oh and I also put myself through university and worked 2-3 jobs through all of my courses in order to pay my fees, and rent etc with no help from my parents. Why? Simply because I wanted to do it myself, and yes that did give me a sense of pride and still does.