Gifting to help first time buyers

Mortgage

An update from Key Partnerships​

Article date: 18/06/2019


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
Deposit ​£10,623​£31,970​
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

Request a call back from our team


* Source: Independent
** Average house value for first time buyers - Halifax
*** Source: Bank of England
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