Professional Property Managers in Rochford

Bank of Mum and Dad: What Rayleigh Buyers (and Their Parents) Need to Know. The Bank of Mum and Dad: What Buyers (and Their Parents) Need to Know Almost half of all first-time buyers get financial help from the Bank of Mum and Dad*. But for parents planning to assist their offspring, or children hoping to get a helping hand, there are a few issues to consider. • Parents should always seek financial advice before helping their children out. • Buyers should inform their solicitor, mortgage broker and lender if they’re given funds. Parents will need to provide ID, verify the origin of the funds and confirm that the gift won’t have to be repaid. • If the funds are a loan, agree on a repayment plan and notify the lender (as this will influence mortgage affordability). • Parents who act as mortgage guarantors should be aware that if their child defaults, they’ll have to pay the mortgage or risk losing their own home. • A joint mortgage may have stamp duty implications if the parent already owns a property. Looking to buy a property? Contact us today. * Last year, 46% of first-time buyers received financial help from parents (Savills).