Impartial advice 1st time/2nd time buyer

jam14

Thanks for all the help so far, I'm hoping to show this to our youngest daughter so she can make up her own mind.

Basically after 6 months into the mortgage our eldest daughter has split with her boyfriend and we are hoping to retain the house by changing his name for our youngest on the mortgage, he has agreed to be compensated and the bank say this is possible. We are only looking to do this short term until the 2 year penalty has passed then intend to remortgage her with us as guarantor.

Our youngest daughter is a few years from leaving home but doesn't want to be worse off as a result of no longer being a first time buyer. She hasn't researched this but she is guessing she will be worse off for offers & home buying schemes could anyone please advise if this is actually the case? If we can be sure in real terms of her being out of pocket long term then we would agree to make up any shortfall at the time in a bid to reassure her and get things sorted quickly.

Thanks

Dave_Ham

The main issue I would say is that if eldest daughter cannot afford on own name now, how is she going to afford it in 2-3 years time when youngest daughter may want to buy?

Her exit route is much more important than deals she may/may not lose out on.

There are not really many incentives in being a first time buyer product wise.

Hope this helps

jam14

cant she just remortgage in 18 months with us as guarantor and release our youngest?

Dave_Ham

Incredibly unlikely, guarantor mortgages are less and less accessible and in 2 years not sure what the marketplace will be for these...

jam14

food for thought Thanks Dave appreciate it - any other thoughts to a way forward?

The_big1

Dave_Ham wrote: »

Incredibly unlikely, guarantor mortgages are less and less accessible and in 2 years not sure what the marketplace will be for these...

I have just been reading Phil Spencers book called "how to buy your first home" that came out in a revised edition last year.

He says on p43 "there are even special guarantor mortgages, where the parents guarantee the payments if the lender is concerned about the FTB's ability to keep up payments." But he says these offers are constantly changing, is this why I cant find much info about them at the moment?

I wondered if anyone on here knew anything about this and could point me in the right direction?

Wh05apk

These tend to be some of the smaller building societies, but also Woolwich do a similar scheme, where the parents deposit funds in a savings account which are returned after 3 years (with quite a good rate of interest!)

Generally though there are very few benefits in being a FTB, and potentially being a 2nd timer could help boost her credit score which could be useful if she is looking for 90%

The_big1

Wh05apk wrote: »

These tend to be some of the smaller building societies, but also Woolwich do a similar scheme, where the parents deposit funds in a savings account which are returned after 3 years (with quite a good rate of interest!)

Generally though there are very few benefits in being a FTB, and potentially being a 2nd timer could help boost her credit score which could be useful if she is looking for 90%

Thanks for that, that is actually very helpful.

This is what we have been looking for, my partners father is currently working overseas, but has loads of money and is willing to help us.

This could be our best bet, if he puts some funds in a Woolwich account and we use that as a help to get a better deal.

Are there other options similar to this?