Skipton International is reminding islanders about its ‘Next generation’ mortgage, which allows parents to help their children purchase their first home by utilising the equity in their own property.
The ‘Next generation’ mortgage allows first time buyers to purchase a home without having to save up for a deposit, and assists parents who desperately want to help their offspring get a foot on the ladder, but aren’t able to gift the required deposit.
Effectively a 100% mortgage, the ‘deposit’ is secured on the parents’ property, meaning no need for parents to provide gifted monies, apart from any relevant legal and valuation fees. Given the continued increase in property values over the past decade, many Channel Island parents have strong equity in their homes and can use it wisely as a means to helping their children.
Roger Hughes is Skipton’s Business Development Manager. He says: “It’s no secret that the property market is becoming more and more out of reach of first-time buyers, who now need a significant deposit in order to stand a chance of getting onto the property ladder.
“I speak to many parents whose children are in their twenties and thirties and are still living at home in order to save for a deposit – and all the while, property prices continue to rise. By considering the Next generation mortgage, parents can utilise their own property to help their offspring make that first step to property ownership.”