Getting on the property ladder in this day and age is much harder than it was for the generation above. The economic crash in 2008 didn’t help matters, and with a global pandemic causing a new financial crisis, the outlook for people who don’t own a home already looks pretty grim, as job losses are set to increase and saving enough for a deposit seemingly impossible.
But it is not all doom and gloom, and many people are finding ways to buy despite these difficulties. One of these ways is the bank of mum and dad – in the last decade, parents helping their kids to get on the property ladder has risen hugely.
One of the ways that this can be achieved is through buying a home with your parents, using joint borrower sole proprietor mortgages. This works so that parents contribute to the mortgage, but they do not own the property. You can set this up for a period of a few years, until you are more settled financially and able to afford the payments on your own.
There are some downsides to this that you may need to consider – a family dispute could make things difficult, as if one party stops paying, the other is liable to pay. Also consider the financial security of all involved. You can set this up for a period of a few years until you are more settled financially and able to afford the payments on your own.
A parent dying could also cause the same problem; it is a good idea to chat with a solicitor what would happen in the case of death, of either the parent or the child. Getting on the property ladder in this day and age is much harder than it was for the generation above. The economic crash in 2008 didn’t help matters, and with a global pandemic causing a new financial crisis, the outlook for people who don’t own a home already looks pretty grim, as job losses are set to increase and saving enough for a deposit seemingly impossible.
But it is not all doom and gloom, and many people are finding ways to buy despite these difficulties. One of these ways is the bank of mum and dad – in the last decade, parents helping their kids to get on the property ladder has risen hugely. the outlook for people who don’t own a home already looks pretty grim, as job losses are set to increase and saving enough for a deposit seemingly impossible.
