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Original poster

Bank of Mum...

66 replies

Itsrainingatlast · 29/09/2025 15:26

I appreciate that I am in a fortunate financial position in posting this.
I own my house mortgage free.
My eldest son is in his 2nd year at Uni. He has about £30k in his junior trust fund (I put in £100 every month until he was 18), and about another £10k that he has saved (he also works and is very much a saver). He lives at home as he attends a local Uni and the student life is not really for him.
I am contemplating helping him to buy a flat. I would act as guarantor and would pay the mortgage and rent the flat out for the next two years until he graduates (he's doing a 4 year degree but I think might do PG study as well), and is able to cover the mortgage himself, although the flat would be entirely in his name.
Is this a ridiculous idea, or an effective way of getting my son onto the property ladder? My younger son is 4 years younger, and I would hopefully be in a position to do the same for him when he is a similar age.

OP posts:
Overtheatlantic · 29/09/2025 15:29

I think it’s a great idea. He’s shown himself capable of saving and he’s furthering his education and taking the first steps in to adulthood. If you can help him, help him. I see only positives.

Arlanymor · 29/09/2025 15:30

It's a great position to be in, but I don't understand why you are thinking of doing it now. Once he graduates he could move anywhere, so buying somewhere now would be like giving him an albatross as it anchors him in one place. It's a nice idea but I don't think it is the right time at all, even if you were to rent it out. Also surely you want him to spread him wings a bit and leave your home town at some point? Go travelling at the very least.

Halfaday · 29/09/2025 15:31

If in his name, means that any future benefits or tax breaks for first time buyers won’t apply to him

MidnightPatrol · 29/09/2025 15:31

Why now?

Better to wait until he knows where he’s going to want to live / has a job to get a bit of a mortgage etc surely…?

Can you even buy a flat with a mortgage in his name while he doesn’t have a source of income?

Original poster
Itsrainingatlast · 29/09/2025 15:40

I'm only thinking about this from a financial point of view. Rent would cover the mortgage payments.
I'd love him to spread his wings a bit, but that's not his personality at all - I'm more likely to move from where we currently live that he is!
He actually does have an income, earns £15k a year from a secure part-time job, but I would be guarantor for the mortgage, as I don't have one myself.

OP posts:
Halfaday · 29/09/2025 15:42

Very few now offer guarantor mortgages now

Halfaday · 29/09/2025 15:42

Whereabouts are you in the UK?

chip as chips or Home Counties?

SheilaFentiman · 29/09/2025 15:43

Can you even buy a flat with a mortgage in his name while he doesn’t have a source of income?

yes, this would be my question too. À guarantor is more for if the original person with the debt fails to pay at some point, despite passing initial credit checks.

you may have to take out a mortgage on your own property and gift him that money,

Halfaday · 29/09/2025 15:43

I wouldn’t want to tie my young adult son in to an area and a mortgage. No way.

SheilaFentiman · 29/09/2025 15:44

I think buy to let morrgages typically require a 25 % deposit? That might be out of date.

Zempy · 29/09/2025 15:45

A friend of mine did this for her DD but DD married a forces chap and has never lived there.

They can’t seem to sell it and it’s had periods of being untenanted.

I think you’re rushing a bit…

SheilaFentiman · 29/09/2025 15:49

Who would be responsible for dealing with repairs, finding tenants, administering deposits, eviction (if it came to that)?

ishimbob · 29/09/2025 15:49

My parents did this for me and, while it was very generous and I am honestly not trying to be ungrateful, I was too young for home ownership.

Two things - one, it was a lot of responsibility having to deal with maintenance and all the things that come with home ownership and two, I wasn't really ready to commit to that location and I ended up selling again in 3 years (and again I was very young to be handling a sale). I also didn't really know what sort of property I even wanted.

Now I know you think he won't want to move - but honestly it's waaaay too early to conclude that. He might fall in love with an Australian and move half way round the world. You just can't predict where a kid his age is going to want to settle down.

I would wait until he is 25 at the earliest

JohnBullshit · 29/09/2025 15:49

I would leave it for now. It sounds as if your DS is already in a much sounder financial position than most, and if you can help him even more further down the line, that's great. But any decisions about where his first property will be have to be his own. The graduate job market is pretty sluggish at the moment, and he might need a fair bit of flexibility.

Original poster
Itsrainingatlast · 29/09/2025 15:49

I've been looking at JBSP mortgages - they're designed for exactly this scenario.
As I said I am in a fortunate financial position.
I was really asking about the financial benefits (or not) - it would be my sole mortgage, so tbh, if he wanted to move he wouldn't be tied.
We are Home Counties!

OP posts:
ishimbob · 29/09/2025 15:52

Itsrainingatlast · 29/09/2025 15:49

I've been looking at JBSP mortgages - they're designed for exactly this scenario.
As I said I am in a fortunate financial position.
I was really asking about the financial benefits (or not) - it would be my sole mortgage, so tbh, if he wanted to move he wouldn't be tied.
We are Home Counties!

But the financial benefits will depend in part on whether he ends up living there for at least the medium term? You can't separate it out like that

The place my parents bought for me would have been a good investment if I had lived there for 5+ years but because of stamp duty, was pretty cost neutral because I left after 3

Halfaday · 29/09/2025 15:53

Itsrainingatlast · 29/09/2025 15:49

I've been looking at JBSP mortgages - they're designed for exactly this scenario.
As I said I am in a fortunate financial position.
I was really asking about the financial benefits (or not) - it would be my sole mortgage, so tbh, if he wanted to move he wouldn't be tied.
We are Home Counties!

So hopefully your deposit will be more than £40k!

OP i don’t think it’s wise at all

Halfaday · 29/09/2025 15:53

Itsrainingatlast · 29/09/2025 15:49

I've been looking at JBSP mortgages - they're designed for exactly this scenario.
As I said I am in a fortunate financial position.
I was really asking about the financial benefits (or not) - it would be my sole mortgage, so tbh, if he wanted to move he wouldn't be tied.
We are Home Counties!

it is his money? In his name

MidnightPatrol · 29/09/2025 15:54

I think given the cost of buying property / tax situation etc - you’re probably better off just making sure his £30k is well invested, so when he does want to buy a place to live in, it’s grown.

Halfaday · 29/09/2025 15:55

No one wants to be the landlord of a student house and live it with your mates. No way!!

and He has about £30k in his junior trust fund (I put in £100 every month until he was 18),. So it is his. Not yours. Is he very keen on becoming a landlord at 20? To his mates?

Halfaday · 29/09/2025 15:55

And this will mean his next purchase… he won’t be a first time buyer. And that comes generally with some very tasty tax breaks and incentives

Original poster
Itsrainingatlast · 29/09/2025 15:57

MidnightPatrol · 29/09/2025 15:54

I think given the cost of buying property / tax situation etc - you’re probably better off just making sure his £30k is well invested, so when he does want to buy a place to live in, it’s grown.

Thanks @MidnightPatrol this is really what I am asking. The money is well invested at the moment, but I was just wondering if property was a better investment.
The alternative is that I can just do this myself, but I want to help my children as much as I can.

OP posts:
SausageRoll2020 · 29/09/2025 15:58

Lots have already pointed out some potential pitfalls above, but to add another point.
I don't think you should consider this if you aren't 100% confident you can offer the same or equivalent to your other son, you say that you "hopefully" could. There's an opportunity for massive unfairness and resentment there.

Why not just purchase it as a buy to let in your own name and then in a few years if you want to support your sons with house deposits when they are ready to get on the ladder you'll have an asset available to utilise.

Original poster
Itsrainingatlast · 29/09/2025 15:59

Halfaday · 29/09/2025 15:55

No one wants to be the landlord of a student house and live it with your mates. No way!!

and He has about £30k in his junior trust fund (I put in £100 every month until he was 18),. So it is his. Not yours. Is he very keen on becoming a landlord at 20? To his mates?

It wouldn't be a student house?
We live in a very desirable commuter town. I was thinking of a 2 bed flat, rented to professionals.

OP posts:
Halfaday · 29/09/2025 16:01

Itsrainingatlast · 29/09/2025 15:59

It wouldn't be a student house?
We live in a very desirable commuter town. I was thinking of a 2 bed flat, rented to professionals.

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And he’d live in there with a lodger whilst at uni?