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Original poster

As a homeowner, how can i access money to help my kids

26 replies

ssd · 01/08/2023 10:16

To buy their own places?
We own this house outright.
My kids need money for a deposit.
How can we help them?

OP posts:
MutantTurtles · 01/08/2023 10:21

let them set up isas that give a house buying bonus in their own names and give them money regularly to out in those

anything else is foolish

Original poster
ssd · 01/08/2023 10:26

I don't have spare money for that.
The only money i have is in this house.

OP posts:
taxguru · 01/08/2023 10:28

Unless you actually sell your house, everything else you can do with it is just borrowing, i.e. getting into debt, i.e. re-mortgage, equity release, etc - it's all debt. And debt always comes with a cost, i.e. interest or giving away a share of the equity.

JeandeServiette · 01/08/2023 10:30

Do NOT release equity. It's almost always an expensive mistake.

Either downsize to give them a lump each or house them so they can save like mad.

GolgafrinchamB · 01/08/2023 10:31

MutantTurtles · 01/08/2023 10:21

let them set up isas that give a house buying bonus in their own names and give them money regularly to out in those

anything else is foolish

The help to buy Isa scheme ended nearly 4 years ago. I know because we had to rush to set them up in time.

OP, without downsizing your home, there aren’t many options.

JeandeServiette · 01/08/2023 10:32

LISA is now the house deposit vehicle with a 25% bonus when you buy.

sashagabadon · 01/08/2023 10:37

Downsize?

FrenchandSaunders · 01/08/2023 10:40

Downsizing is the only sensible option really, unless you're very old, in which case equity release would be worth looking into.

Original poster
ssd · 01/08/2023 10:43

Thanks everyone

OP posts:
MutantTurtles · 01/08/2023 11:27

GolgafrinchamB · 01/08/2023 10:31

The help to buy Isa scheme ended nearly 4 years ago. I know because we had to rush to set them up in time.

OP, without downsizing your home, there aren’t many options.

Show quote history

There is the lifetime ISA one which is similar

https://www.moneysavingexpert.com/savings/lifetime-isas/

LegendsBeyond · 01/08/2023 11:36

ssd · 01/08/2023 10:26

I don't have spare money for that.
The only money i have is in this house.

In this case, you can’t afford to help them. You risk making yourself incredibly vulnerable if you release equity. Do you have a good pension?

Spirallingdownwards · 01/08/2023 11:38

GolgafrinchamB · 01/08/2023 10:31

The help to buy Isa scheme ended nearly 4 years ago. I know because we had to rush to set them up in time.

OP, without downsizing your home, there aren’t many options.

Show quote history

Replaced by LISA which is perhaps actually a better option for most people.

Peony654 · 01/08/2023 11:44

The only option which doesn’t give you more debt is to downsize and give them the excess.

WhatCameFirstTheChickenOrTheDickhead · 01/08/2023 11:48

As pp said wothwr downsize or if practical, allow them to move in rent free/covering their bills only allowing them to save like mad for 1-2 years.

Don't get into debt yourself for it, and I say that as someone who was helped by my parents. I would never have expected them to get themselves into debt.

CaptainSeven · 01/08/2023 16:16

I've searched for this article but can't find it. A few years ago I read on the Guardian website about a family who took a mortgage out on their home. Which had been mortgage free for their son.

The family home was worth lots. I think they took £120,000. (A fraction of what house was worth so they got a good deal) Son bought his home (outright I think).

Then crucially the son paid the mortgage. Not the parents.

It was all sorted out legally - this is key.

Could something like this work?

GolgafrinchamB · 01/08/2023 16:40

Spirallingdownwards · 01/08/2023 11:38

Replaced by LISA which is perhaps actually a better option for most people.

Show quote history

Good to know, thanks!

Original poster
ssd · 01/08/2023 17:47

@CaptainSeven , how would that work if you are nearly 60, surely they had to be younger to take another mortgage out?

OP posts:
TomorrowsFairytaleTodayPlease · 01/08/2023 17:50

DONT do equity release - its a mugs game, never a good idea

SirChenjins · 01/08/2023 17:54

I’m seeing a mortgage broker about this very issue in a few weeks - could you make a similar appointment? DD has a LISA but is struggling to get the additional money needed. I’m still working though, not sure you are?

Original poster
ssd · 01/08/2023 19:02

@SirChenjins , yes we're both still working.

I hadn't thought of speaking to a mortgage broker, i don't want to take a mortgage out as i need to help both dcs. Although i really have no clue about the costs involved.

OP posts:
Original poster
ssd · 01/08/2023 19:05

I definitely won't do equity release, i was hoping there might be something else mnetters knew about that i hadn't thought of but i think selling and downsizing is the only option. They both have Isa's. But not nearly enough for a deposit.

OP posts:
Original poster
ssd · 01/08/2023 19:07

It was different in my day, i bought in the early 90s, got a 100% mortgage with Clydesdale bank...and got cashback too!!!

Jeezo..

OP posts:
Original poster
ssd · 01/08/2023 19:10

And i left school at 15 and didn't consider uni...bought a smart flat in my early 20s working a minimum wage job...

Now my kids have degrees and masters and still can't afford property....its hellish.

There's no inheritances coming there way, that seems they only way kids get anywhere now

OP posts:
TheDuchessOfMN · 01/08/2023 19:11

I’m probably stating the obvious, but you could allow them to move in with you and save for the deposit?

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