Remortgage to help DD

[Lemontwizzle]

Hi dh and I want to help DD get on the housing ladder. We live mortgage free in our house. We are both 48 and have no plans to retire early. Dd is 26 and a nurse. She’s single and just can’t raise the deposit for a house purchase.
i’d like to remortgage our home for 30k and give her this money towards her deposit. I’ve had some quotes and the payment is easily affordable for us.

dh is more apprehensive about it but I think it’s a no brainer. We have no other children.

No brainer for me either!

Sounds like a lovely thing to do.

Does your DH have any specific worries?

probably cheaper to take out a 5 year loan or borrow on your credit cards than to remortgage. You will get a better rate with no costs- if you can afford to pay back over 5 years- and if you cant then you really should think twice about doing it .

I thought a re-mortgage would offer a lower rate of interest since it is a secured loan and there is less risk to a lender.

I would have thought that a personal loan or credit card loan, which is unsecured I assume, would be at a higher rate of interest to reflect the credit risk of the OP to the lender, but I have not tried to get quotes, so maybe it is.

OP your daughter is only 26 , single and free. She's not desperately looking for a stable home with young children. Why the rush to get her onto the property ladder?
You also don't seem to be in a good financial position if you need to borrow that much. Don't you have any savings currently? With no mortgage and only the two of you at home your expenses must be low enough to have a good financial cushion. £500 a month, for 2 years gives you 12K, you can then borrow the rest. In any case 30K is a massive deposit outside of London. As a nurse she's in a good position to earn more with bank shifts etc.

I understand your DH worry - not only can things turn in an instant - it seems unnecessary and you don't seem to have much of a financial cushion yourselves. I'd think it a no-brainer if your daughter was older, needing to get a mortgage quickly before her age allows for much shorter length. But she's only 26.

*age allows for a longer length

No

I bought a house partly with loans/credit cards last year. I can pay it off in 2 years- got an average rate of 2% with no fees- the mortgage was more than double that and minimum of 5 years (and limits as to how much could be paid off without a penalty which led to more interest)