Mortgage help for children

sunnyflower

Hope some people can share their knowledge please.
My son and girlfriend are planning to buy a shared ownership house. We agreed to lend them the deposit of 7k. However, during the search the lenders realised that my son has a car loan and wanted an increased deposit of 11k.
This will be a big chunk of our savings.
I looked into the Nationwide Family Deposit Scheme, but we would have to borrow at least 25k and pay back over 18 years (when I'm 75).
Is there a cheaper / simpler way of releasing our equity or otherwise helping them ?
Thanks

AnotherJoe

Lend them the deposit?
Will you be signing a form to say that its a gift, and they will then pay it back "off the books' so to speak? Because i think if you let the mortgage co know its a loan, that could be an issue.

Smevchenko

Have a look at the Barclays Springboard mortgage..... Pay the deposit into a savings account instead, you will gain interest and after 3 years, you can withdraw all the money. This will allow your son and his girlfriend to get a 100% mortgage. Obviously dependent on meeting Barclays lending criteria.

https://www.barclays.co.uk/mortgages/family-springboard-mortgage/

https://intermediaries.uk.barclays/lending-criteria

*As pointed out by kingstreet below, this is not available on shared ownership properties.

kingstreet

Be careful.

Many 'helping hand' schemes aren't accepted on shared ownership.

Is it a newbuild? If it is, Nationwide's minimum deposit is 15% of the purchase price of the share for a house, 25 % for a flat.

spadoosh

This plan isnt going to help him, its just giving you some of his rent and probably getting him stuck in a house he cant get out of.

sunnyflower

AnotherJoe wrote: »

Lend them the deposit?
Will you be signing a form to say that its a gift, and they will then pay it back "off the books' so to speak? Because i think if you let the mortgage co know its a loan, that could be an issue.

It's not a formal arrangement, he's going to pay it back as and when. I'm assuming that the lenders asked him this.

sunnyflower

spadoosh wrote: »

This plan isnt going to help him, its just giving you some of his rent and probably getting him stuck in a house he cant get out of.

They pay a lot in rent though, and not much room for their 2 young children. If they ever get moved to a bigger house, they'll be paying even more rent and have nothing to show for it.

TadleyBaggie

sunnyflower wrote: »

It's not a formal arrangement, he's going to pay it back as and when. I'm assuming that the lenders asked him this.

All lenders will ask what the source of the deposit was. Doesn't mean that he told them all the facts.