How can I help my child get on the property ladder?

Prices of property and houses have risen drastically in the past few decades. It is becoming pretty difficult to become a home-owner because of the increased cost. To make way for better facilities, the mortgage lenders have also come up with innovative schemes which will open a broader range of options for the first time buyers. They can also look for independent mortgage advice from their parents and choose to buy the property even if you don't have the cash to make the deposit right away.

These schemes are referred to as "family assist" mortgages. If you include your parents to give the money, you can also apply for a joint mortgage application. If the parents of the children have a better earning, it will become more feasible to borrow the amount. Let us see some of the lifetime mortgage advice in Teddington and other places which are going to help further you to get your child on the property ladder.

1) Start planning when your child is young

If you are willing to help your child later, you need to start with an investment and savings account when he is young. It is advisable to start them in your child's name itself. If you start investing a small amount from the beginning on which you don't have to pay an extra tax either, then these amounts are going to add up later and become a significant amount of sum. The sooner you start the more benefits you are going to have due to the compound interest which is going to be added each year.

2) Invest your current savings to deposit to get a new home

As the prices of the house are increasing at an exponential rate, to survive the inflammatory pressures, it is advisable that you start investing your current savings. You should seek some tax advice as well, but it is going to be beneficial in the long term.

3) When your child applies for a mortgage, become a guarantor

When the mortgage lender has an added guarantee, it becomes easier for him to lend the money. But, before you become a guarantor, you need to know that you will become responsible if your child is unable to pay the money in any circumstances.

4) Have a joint mortgage

You can either buy the house with your child or suggest them to purchase with someone who can be a third party owner of the house. Make sure that the other person is trustworthy and all the ownership and obligations details should be mentioned.

5) Part buy and part rent

As the prices of becoming an owner are increasing, shared ownership is becoming very popular. There are some house associations which gives you the comfort of buying only a part of the house and letting the other part be on rent.

These are some of the options which can try while trying to purchase a house of your own. These schemes have been made to make it simpler and convenient for you. Make sure that you read the agreement paper carefully before choosing the schema.