I’m sure after all your parents have done for you throughout your life, the last thing on your mind is to ask for their help when you finally come to purchase your first home. But your parents can help you secure your first mortgage!
But, what are the rules around said help? We’re here to help as always…
Of course your parents can help you secure your first mortgage.!
Helping boost you up to that all important 5 or 10 percent deposit is the most common way in which parents can gift you money towards a property.
All we have to do is, 1) fill in the appropriate forms, and 2) inform the lender in due time – after that, you’re golden, and hopefully have reached the deposit threshold for your soon-to-be home!
That’s a very interesting question Phillipa, thank you for getting in touch!
There isn’t a set limit to the amount that a parent can gift towards your deposit – whether its 1%, 5% or the full 10% marker, it’s all just down to their generosity!
The thing to consider though is, if you’re reliant on a parent to pay the deposit, how realistically can you afford the subsequent mortgage?
No matter the value of the gift, the mortgage repayments are still based on your salary alone (plus anyone else you may be purchasing with) so don’t set your sights on an extortionate property simply because you have a large deposit available. Good work on getting everything sorted Ashlea, I hope you’ve found your dream home!
Onwards to your question then! It might sound obvious, but if they really want to make you feel at home, why not ask them to purchase a new sofa, or a TV, or even something as simple as some house plants?
These are all purchases that first-time buyers can forget to consider, so receiving them as a moving-in present from your parents is ideal and can grant you that comforting feeling at home from day one! Can’t live with them, can’t live without them – that’s parents for you!
If you’re anticipating that your parents will be putting their hands into their pockets for your big move, be sure to let us know ASAP so that the process runs smoothly, and most importantly for you, runs quickly!
Be sure to read back through our previous know your mortgage sessions here and set yourself for first-home success. You can also visit our first-time buyers page now to get in touch with our team, use your quick contact form and we’ll be in touch as soon as we can.
See you next time!