Parent-guarantor first time buyer mortgages are on the rise.
There has been an increase in parent-guarantor first time buyer mortgages as more young people try to climb on the property ladder before prices rise.
According to recent figures around 25% of parents would be prepared to act as a first time buyer mortgage guarantor if it would help their child to climb onto the housing ladder.
The Bank of Mum and Dad is still open, and various lenders are offering products to appeal to buyers purchasing with parental help. Lenders such as Aldermore, Lloyds TSB and Barclays all have products within their range aimed at such first time buyers.
Earlier research from Lloyds TSB has revealed that the 'Bank of Mum and Dad' is evolving. No longer it is just offering financial help for a first time buyer mortgage, due to high property prices it is also helping out with a move up to a second home. Some parents are even offering their own equity as a guarantee as opposed to just handing over cash.
However many parents looking to help their children were found to have limited knowledge of guarantor mortgages. If you are looking to help your child climb on the property ladder you are advised to speak to an impartial expert at independent 'whole of market' mortgage broker Deal Direct.
We can look to see if a guarantor mortgage best suits your child's first time buyer needs or if there is an affordable alternative that can be found.
For a first time buyer mortgage,
call an adviser on 0800 048 8828.
