Helping loved ones onto the property ladder

The difficulties facing younger people in becoming homeowners are well-reported, with many 30-somethings still renting. Consequently, an increasing number of parents and grandparents are stepping in to help children onto the housing ladder.

There are a number of ways to do this; gifting, loans and providing security to mortgage providers are all worth consideration, and many of these solutions have the dual-advantage of helping with effective estate planning. However, you should seek advice when considering which option to take to ensure that no unexpected tax liabilities result from this act of generosity.

The home on which the mortgage is secured may be repossessed if payments are not kept up to date.

Got a question?

Do get in touch with us if you need a bit more information about these services, or any of our other financial planning advice.