| With mortgage lenders reigning in their lending and | | | | percentage for the buyer. You may be in the fortunate |
| moving the goal posts it is now much more difficult to | | | | position to have a parent who owns their own home |
| obtain a mortgage as deposits needed are more than | | | | and is able to invest more in the property for you; |
| many can afford. The higher deposits and the tougher | | | | parents always want to help their children so I'm sure |
| credit approval checks are stopping many for buying | | | | they will help as much as possible. |
| their first home. However there is a way to get around | | | | If the family equity loan isn't an option for you, there is |
| this hurdle and that is going down the shared home | | | | another shared home ownership option in the form of |
| ownership path. | | | | government schemes, here in Scotland it is the Low |
| To avoid the need for a deposit or to get a better deal | | | | Cost Initiative for First-Time Buyers (LIFT). If you are |
| on a mortgage you could go down the road of asking | | | | classed in the low to moderate income bracket then |
| a parent or close family member to take an equity | | | | the government may be able to assist you with putting |
| stake in the property which will reduce the risk to the | | | | up a proportion of the equity needed to buy a home. |
| lender since they will have another person liable for the | | | | This may be a better option even if family help is |
| property. It benefits the buyer with better mortgage | | | | available as you can borrow up to forty per cent |
| deals and choice often resulting in you paying less than | | | | normally with more available in exceptional |
| if you could only afford one of the lower deposit | | | | circumstances. Of course increases in home values |
| mortgages meaning poor rates. | | | | would benefit your family member. |
| Normally the equity split would be 90 per cent for the | | | | Investigate both options and decide on which is best |
| buyer and 10 per cent for the family member, although | | | | for you, good luck. |
| in these economic times it will likely be a lower | | | | |