If you are in the very fortunate position to be able to get your children onto the property ladder, then you should – ideally – lend a hand. Some parents choose to give their children a deposit if they can afford it but others choose to become a guarantor instead, helping their children into a property without the need to save for a costly deposit. 

Most parents are always willing to lend a hand to their children, but understanding whether lending money to your family is a good idea is the first consideration. For some, money and family do not go hand in hand and so, they avoid the idea of lending. However, casting that cautious eye over lending could be detrimental to your children;s ability to buy a house one day. So, with this in mind, here are ways that you can help your children into their own property.

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  1. Ensure financial literacy. The first and best way that you can help your kids onto the  property ladder is to get them an education on financing. Installing wise choices and financial habits into your kids from a young age is the first step, but getting them an appointment with a financial advisor is good parenting. When they’re close to property buying age, having someone explain to them everything they need to know about stamp duty and mortgage insurance will help.
  2. Let them stay at home. You do not need to kick your babies from the nest any earlier than is necessary, but you should ensure that they are able to pay bills. Benefit from them getting the best chance to buy property by getting them to pay a ‘keep’ into a household pot. You can give that money back to them when they move out, and make sure that they can cover their expenses, too. This helps them to learn to budget.
  3. Offer help with the deposit. If you don’t want to give your kids money and expect it back, make a gift of the deposit. This is a very generous way to help them to become property owners. It can fasttrack them into home buying, even if what they buy is a small, starter apartment. Firstly, the deposit is hard work, but if you help out you can take the pressure off of them. You don’t have to give them this as a loan if you don’t want to, just ensure that they know the implications of a monetary gift.
  4. Be a guarantor. If you offer your children a family guarantee, their mortgage is secured against your home. This is where you need to get a lawyer involved to help you to draw up a contract that states the consequences if they do not keep up with their end of the bargain.
  5. Buy with them. The last thing you could do is go into the property as a partnership with your children. If you can’t give money, or you don’t want to loan it, you can purchase a property with them and have your name on it as a co-owner.