Best mortgage deal where parents can help out

Dave_Ham

Vote 2 for getting a broker on board and with 15% deposit this should be straightforward. Painful lender process, but definitely achievable.

See what your Dad's man says and ask how many mortgages they do and specifically how many adverse (assuming you have told Dad!)

All the best

GMS

Have the defaults been satisfied? If not how much are you paying towards them if any?

Be careful as a lender may take the contractual pre-default payment as a commitment which may impact affordability.

Definitely a case for a broker

koneko

All the defaults have been satisfied. I did this before I started saving for the mortgage. No sense in saving when there are debts to be paid. It actually helped me with the saving in a funny way as I threw all my spare money at the debts so when it came to saving, I just carried on what I was doing before as I was used to living off the same amount. I've been trying to tidy up my credit reports as well, couldn't believe how many incorrect dates etc there were, particularly on equifax!

getmore4less

There are only two options that I know of that protect the parents money.

Barclays springboard
YBS offset plus

Everything else will need it as a gift.

koneko

I think a gift is a possibility, I was just trying to figure out what the best way would be. The money is from my grans will and my mum has said she wants to help us get on the property ladder now rather than the money just sitting in a trust until eventually one day we will inherit it.

I think with my adverse, we would be unlikely to get accepted for the Barclays Springboard, this was one I'd looked into actually. The other one I haven't heard of.

kidmugsy

getmore4less wrote: »

There are only two options that I know of that protect the parents money.

Barclays springboard
YBS offset plus

Everything else will need it as a gift.

How about the LloydsTSB lend-a-hand scheme? Or http://www.firstmortgage.co.uk/family-equity-loan-plan/

Or
http://www.wordsworks.co.uk/case_studies/BritanniaFamilyFlyer.pdf

getmore4less

kidmugsy wrote: »

How about the LloydsTSB lend-a-hand scheme? Or http://www.firstmortgage.co.uk/family-equity-loan-plan/

Or
http://www.wordsworks.co.uk/case_studies/BritanniaFamilyFlyer.pdf

add them to the list



First mortgage does not say which lenders will go with their plan and looks like a second charge whcih does not protect the money on price drops

Same with the britania one

both need a sale to get any money back

also found this from an article in Jan (so there amy be more deals out there)

Meanwhile, both National Counties and Aldermore building societies offer first-time buyer deals which are secured on the equity in the parent's property. With the National Counties "Family First" mortgage the homeowner is charged a rate of 4.89pc - for two years - and pays a £495 fee. The Aldermore "Family Guarantee" mortgage charges a rate of 5.98pc for three year, and comes with a more significant £1,298 fee.

kingstreet

There are several schemes similar to Barclays Springboard.

These involve the donor placing savings in a charged account to which they have no access until the property value increases and the loan to value falls. Interest is still payable or offset is possible, but the money is at risk if the borrower defaults.

http://www.lloydstsb.com/mortgages/lend_a_hand.asp

http://www.mhbs.co.uk/family_deposit_mortgage.aspx

http://www.themarsden.co.uk/news/marsden-10m-support-for-first-time-buyers