Helping kids get on the mortgage ladder

Worried_parent

Hi, I have 2 children; 1aged 24(son) in the first year of uni and going to accrue a lot of debt and the other aged 20 (daughter) working abroad in a low paid job but with no debt. Neither have any savings. DH and I would like to help them save to get onto the mortgage ladder in the future. Any ideas about what is the best way to do this ? We could afford a lump sum of £5k each and then monthly payments of £200 each. Also, neither of them have any pension provision and were wondering if we should put some of the above money into that as well. Any advice would be gratefully received . Thank you

dimbo61

Worried middle aged workers with no pension would be a better title.
The state pension is at best £165 a week which you now get at 65/66/67 or even 68 depending on your current age
Will you still be able to do your current job at 67/68 ?
Check if your employer offers a work based pension and join it ASAP.
Overpay your mortgage while helping your Son with £200 a month or more if you can afford it.
Martin Lewis website has an online calculator to work out how much your son will get from the student loan company and how much you are expected to pay.

Worried_parent

Thanks for your reply. We have overpaid on our mortgage and we are in pension schemes ourselves so it’s just the kids that we’re worried about. Left to their own devices we doubt that they will be able to get onto the mortgage ladder and coupled with jobs with no pension provision, we think that they have a hard financial future ahead. We are trying to think of the most effective way to help them within our budget.

POPPYOSCAR

dimbo61 wrote: »

Worried middle aged workers with no pension would be a better title.
The state pension is at best £165 a week which you now get at 65/66/67 or even 68 depending on your current age
Will you still be able to do your current job at 67/68 ?
Check if your employer offers a work based pension and join it ASAP.
Overpay your mortgage while helping your Son with £200 a month or more if you can afford it.
Martin Lewis website has an online calculator to work out how much your son will get from the student loan company and how much you are expected to pay.

Where do you get that from in the OP?

cjv

They could both open a Lifetime ISA for you to make deposits for them, if you trust them not to touch the money.

Deposit £4000 in both their LISA's before the end of this tax year and they will gain a £1000 bonus from the government each, you can then deposit the remaining £1000 after this tax year along with the additional £200 contributions and get a 25% boost on those funds too.

Be sure to read the terms and limitations before deciding if it is right for them (and you).

https://www.moneysavingexpert.com/savings/lifetime-isas/

Worried_parent

Thank you, I think we’ll do that. I think they also need to get credit card each ( but pay it off in full each month) to build up their own credit score for when it comes to applying for a mortgage.

miniemma

We are doing exactly what cjv said for our daughter.

We deposited £4000 into a LISA last year for her 18th birthday and immediately got £1000 bonus and this year she has already saved £4000 to put in threre herself in April

somethingcorporate

miniemma wrote: »

We are doing exactly what cjv said for our daughter.

We deposited £4000 into a LISA last year for her 18th birthday and immediately got £1000 bonus and this year she has already saved £4000 to put in threre herself in April

:T
Free money!

Thrugelmir

Encourage them to manage their own money well. Saving for a deposit/fees etc isn't something that can be done overnight. One has to be committed.

tlc678910

Hi,
I just wanted to say while it is very kind of you to help towards your kids deposit don't encourage them to get a property until they can afford it and until they know where they want to settle (and until they want that responsibility). It sounds like it will be a while yet until this is true for either of them.
Tlc

Worried_parent

Thanks. It seems the way to go for my son but not my daughter as unfortunately, with living abroad she will be ineligible for a LISA .