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SarahBell

Mortgage For Your Kids

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http://money.guardian.co.uk/property/mortg...1550212,00.html

Parents who are keen to help their children on to the housing ladder are to be offered a new scheme by Norwich & Peterborough building society.

The Lend a Hand scheme, which will be available from August 22, allows parents to boost the amount their offspring can borrow by putting up their income to cover part of the loan.

The first-time buyer - or buyers - must earn enough to borrow 75% of the cost of their new home, but any more they need to borrow can be backed by a willing parent, who can increase their mortgage by an amount equivalent to their salary.

For example, a parent earning £26,000 a year could add that amount to the mortgage their child is able to raise alone, increasing the amount they have to spend.

The parent does not actually have to hand over any money, and their name will not appear on the legal title of the property, but they are jointly responsible for the debt.

..

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http://money.guardian.co.uk/property/mortg...1550212,00.html

Parents who are keen to help their children on to the housing ladder are to be offered a new scheme by Norwich & Peterborough building society.

The Lend a Hand scheme, which will be available from August 22, allows parents to boost the amount their offspring can borrow by putting up their income to cover part of the loan.

The first-time buyer - or buyers - must earn enough to borrow 75% of the cost of their new home, but any more they need to borrow can be backed by a willing parent, who can increase their mortgage by an amount equivalent to their salary.

For example, a parent earning £26,000 a year could add that amount to the mortgage their child is able to raise alone, increasing the amount they have to spend.

The parent does not actually have to hand over any money, and their name will not appear on the legal title of the property, but they are jointly responsible for the debt.

..

Yeah, thats really helpfull, especially since my parents are retired (although they are only in there 50's) and I'm sure I'm not the only one in this situation. So even if I was stupid enough to go for such a scheme it would be no use at all!!!

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Guest Charlie The Tramp
Just a quick thought, would this be a good way to get around inheritence tax?

The parents would be part of the mortgage charge and be deemed by the IR as having an interest share. That share I believe would be classed as a part of their estate.

You can`t beat the Tax Man, well maybe some of the time. :)

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Good point Charlie, no financial agreements or contract supersedes statuary rights.

It’s going to crucial how well you get on with you’re a parents or inlaws. If they turned nasty they would have the right to let a room to a chav or mad axeman.

If you can’t afford to buy without getting mum and dad involved then you can’t afford to buy. Why not just wait for prices to come down.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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