Helping son with deposit on first house

KittyMac

I was sure I  would see a thread on this but could not find one. Apologies if I have missed one. I want to help my son buy his first house but cant just give him the money for a deposit as it is my only savings. What is the best way - to have joint name on the deeds or to draw up a legal agreement acknowledging the loan?

Thrugelmir

The deposit will need to be gifted without reservation not lent. 

[Deleted User]

If you're already a home owner then becoming a joint owner will attract the higher rate of SDLT. You could lend him the money although that will greatly reduce the number of lenders available to him or you could look at something like the Barclays Springboard mortgage or one of the other mortgages designed to let parents help their offspring. 

Cscott139

There are a few options available where you lend him the money for a number of years and the lender returns this to you plus interest after an initial period. Contact a broker who will be able to look at some options for you.

BJV

Not sure what it is called but I am sure I saw a tv ad for Barclays with something like, You put down a chunk of cash and if your son pays you get it back after 5 years with interest ? Not sure if this may help ?

amnblog

You have three options here Kitty.
1. If you wish to retain the bulk of the funds, there are lending scheme where you can transfer the 'deposit' to a savings Account with the Lender. You get interest on it, and if everything is paid in full and one time, you get your funds back in 3 years.
2. You can give the funds to your Son to put down on his home and put a charge against the property so if he sells you get your funds back before he gets anything.
3. Expect your son to save his own deposit, as no doubt you did.
For options 1 and 2, you and your Son should consult a Broker.