It’s hard enough for parents to cut the apron strings when kids leave home without worrying about how they will support themselves financially. We understand how stressful it can be to juggle your own financial future with getting your children on the housing ladder. A big concern for a number of parents is how their children will get together a deposit for their first home. We, at First Mortgage have come up with a solution that means worrying about deposits can now be a thing of the past.
We are helping first time buyers relying on the Bank of Mum and Dad (BOMAD) to secure a deposit whilst providing their parents with a solid investment for the future. With a ‘Family Equity Loan Plan’, parents can take a stake in their child’s home by providing a 10% equity loan instead of simply giving them a deposit. The loan is then secured against the property by a legal agreement. This means that whilst the buyer owns 100% of the home, when the property is sold the equity loan will be cleared as per the terms of the family contract.
It is understandable that the majority of parents cannot afford to give children a substantial deposit for purchase of their first home, which is why we came up with the Family Equity Scheme. This is a great option for sensible families who are planning ahead for a stable financial future and can save worried parents quite a few sleepless nights!