BLOG: Advice for first time buyers…and their worried parents!
As your children fly the nest and enter into the working world, many of you will worry about their financial future. Balancing your own finances can prove tricky enough, so having to worry about your children’s income on top of that is the last thing you need. The good news is that with new government backed schemes like Help to Buy, there has never been a better time for first time buyers to get onto the housing ladder (even if they don’t have a huge deposit)
As a parent myself and a mortgage broker specialising in giving advice to first time buyers, I deal with parents on a day to day basis who are worried about how their children will ever be able save enough for a deposit. We are pleased to tell them that there is currently a new wave of 90% and 95% LTV products available which means even the smallest deposit can still get you the house you’ve always dreamed of.
We are actively helping first time buyers relying on the ‘Bank of Mum and Dad’ to secure their first home by offering guidance on everything from best buys and rates to budgeting and financial planning. It’s simply unrealistic for the majority of parents to be able to afford to give their children a substantial deposit for their first home and that’s where we come in.
Our advice to first time buyers (and their worried parents!) is to choose an adviser who covers the whole of the market as this will give you the best chance of finding the lowest rate and the most suitable product for you. A good adviser will also talk you through your current income and outgoings or any liabilities you may have (such as student loan repayments) so you can then realise what exactly you can afford.
Savvy families will speak to an expert adviser for a second opinion and will make sure they do their homework so they can look forward to a stable financial future and fewer sleepless nights, as your children take their first step onto the property ladder.
Ian McGrail is director of First Mortgage