Would you remortgage to help your child get on the property ladder?

[SunshineonLeaves]

I’m a 50 something single parent, average earner with a mortgage, a small amount of debt (car loan) and a few thousand in savings.

DC is 22, graduated last year and working with a reasonable decent salary. They are desperate to move out with partner and have saved a fair bit towards a deposit but it’s not enough. I don’t have enough savings to help them, their Dad can’t/wont and same for partner’s parents.

If I remortgaged my payments would obviously increase and I’d be taking on more debt but it would mean I could help them. Trouble is it’s taken me years to get in a half decent position financially and I’m concerned how it will affect my future - not getting any younger etc.

Would you help or should they make their own way?

No absolutely not

I have three dc so that would be a big no anyway but if I had one dc I still wouldn't do it.

You have worked hard to be where you are and they need to learn the same.

It's insane how the world has suddenly changed in that we are all
Expected to fund our adult dc lifestyles and life in general it's crazy

Don't do it op

Your dc is still
Young completely more time to save more for a deposit.

No way!

We hope to help our children but not to the degree we would be compromising our financial security!

Absolutely not. I bought my first home as a single person when I'd just turned 23, I worked damn hard for it and had not much extra cash for anything else but it's one of the things I'm most proud of and set me up on the property ladder for the subsequent 15 years.

Absolutely not nor would I.have accepted my.mom.doing this. 22- they got plenty of time to save

How much do you owe on your mortgage and how much were you thinking of given them?

At 22 no. Let them save up in a LISA for several more years. In the meanwhile they can rent. I would contribute to a deposit from savings but I'd not remortgage.

No bloody way!

They do have a LISA, hoping the new gov don’t change this. Renting seems to be the only answer but as I’ve already said not sure how they’re supposed to save when renting is so expensive.

22 is not old for still living at home these days @SunshineonLeaves , very few people have actually bought their own home at that age

They're only 22. Hopefully they can expect their salaries to increase over the next few years.

No.

I know it is difficult knowing you can't help them as young adults when you see their friends getting family support to buy but you have your own future to secure and less years to do it in. As a single parent I suspect you've already limited your earning potential through the years to be able to raise them. They have years ahead to work hard and sort their futures.

Yes I took out extra money on my mortgage to give my daughter a deposit for her first house. She was single, working in London and trying so hard to save for a deposit.

All with the blessing of the building society. I still had a mortgage but enough equity to borrow a bit more. She paid the extra mortgage amount every month to me even though I told her she didn't have to do so. Then a few years down the line she paid it all off in a final payment. I did not want the money repaid by her and would happily have paid it myself but she insisted.

She would not have been able to get on the housing ladder if I had not helped her.

When I bought my first house back in the 1970s we had no hope for saving for a deposit and interest rates were shocking and pay low. Mortgage companies would only let you have money based on the mans wages and it was almost impossible to rent and save. My much older sister and my Father in Law leant us the money to get a teeny tiny little do it up house in a 'rough' part of town, but that got us on the ladder.

She's my girl and I'd do anything for her. She's 40 now with a big house and wonderful husband and 2 beautiful children. I'm glad I was able to help her get the first step to the life she has.

Don't

They really need to make their own way in the world. See what has happened when they have saved for a few years with a couple of promotions under their belt. You own situation may be better then too

No I wouldn't

No way. They have plenty of time to save for a deposit at 22

In your situation, no - you can't afford to.

Basic rule of money management - don't give what you can't afford to lose.

You'll be putting yourself at a major financial disadvantage - nothing wrong with your DC taking on extra work to save hard for what they want. They'll appreciate it far far more.

Helping her now won’t help her in the long term, saving up for their own deposit will help teach them the value of money and ways of cutting back in other areas of spending. You can help them once they have their first home with furniture etc.

Very few jobs have t be in London. What d they do? What are their qualifications?

if they stay in London, would you want to downsize away from them?

We’re not in London but about an hour outside so still expensive. DC works in education but it’s their first job since uni and we both think it’s important they stick it out for a bit both to look good on their cv and for the experience.

We all have things that tie us to this area but jobs are the main one.

Good to see they have a job that can be anywhere. So a year or two renting in an expensive area then move away from London to a cheaper area. Often easiest to move jobs whilst still young and cheaper in education!

we moved from family and the coast in order to be able to afford to buy a home.

Also in the no way camp. At 22 there is no guaranteed they’ll stay with the same partner - it’s often not a bad thing that people in their early 20s don’t buy houses with each other.

Most 22 year olds aren’t purchasing homes while in their first job. There is a lot of growing up to do and they can rent if they don’t want to stay living with a parent.

No way, give money when you downsize.

No . Buying at 22 may not be the best financial decision anyway. Some financial experts believe that renting and investing is a better way to build wealth.

I’m 26, female, living in Edinburgh.

I got on the property ladder at 25. Grew up in big metropolitan cities where house prices (leasehold apartments) are at least £0.5-1 million. So Edinburgh prices to me doesn’t sound too bad. Having that said, I do find saving for my first flat challenging, but definitely not impossible, and certainly not what the news make it out to be.

My parents are mortgage free, retired at 50. But they didn’t help me with my deposit or anything financially. They did appreciate house prices would only go up, get smaller with population increase and people living longer (due to medical advancement) and will only get harder as the years go by (from their experience).

Having said that, they did support me through repetitive guidance, daily advice, and repeated encouragement. They also directed me where to look, how to read home reports, how to assess a home value, how to determine a good location. Came to viewings with me. They told me to “suck it up” and said it is what is is, stop moaning and get it done (get the property asap). Very very tough love. And now I have nearly half LTV and mortgage paid off in a few years time.

I hope this gives people encouragement. I’m not a particularly smart person, so if I can do it, so can you. Save save save! And the delayed gratification is totally worth it in my opinion. But this is only my story, everyone is different. I’m lucky to have a partner and parents that guide me along the way, even though I didn’t get any financial help. I bought without my partner too. But hopefully in the future it will get easier when buying with my partner.