It’s no wonder so many first time buyers struggle to get on to the property ladder these days with the average house in the UK now costing EIGHT TIMES* the average annual wage.
Equity release, taken out by your client’s parents or grandparents, could provide a sizeable deposit to help them secure their first home AND:
- Lower interest rates
- Lower monthly repayments
- Ability to afford a more expensive house
- Reduced overall debt
Gifted deposit boost - an example
Here's an example of the difference a bigger deposit could make:
Property price: £212,473*
Mortgage term: 35 years
|||5% deposit ||15% deposit |
|Interest rate ||2.93%***||1.88%***|
|Monthly repayment ||£733||£653|
|Total to repay ||£352,520||£297,670|
Gifting the extra £21,347 for a bigger deposit could save £80 a month and £54,850 over the term of the mortgage.
Do you have clients who are looking to help their loved ones find their perfect home?
Submit a referral on our portal
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* Source: Independent
** Average house value for first time buyers - Halifax
*** Source: Bank of England