Rising house prices and stagnated wages has made it harder than ever for younger generations to get onto the housing ladder.
At Four Wealth Management, many of our clients want to help their younger relatives to achieve their dream of buying a home.
Four Wealth Management offer many mortgage solutions, including Intergenerational Mortgages to help you to use your wealth to assist your child or grandchild with buying a property.
Gifting money for a house deposit
The simplest way to help your child or grandchild get onto the housing ladder is gifting money to provide or increase their deposit. This will reduce their initial mortgage debt and monthly repayments.
Using investments to gift money for a house deposit
If you are unable to gift cash, it may be appropriate to borrow against your investments in order to fund their house deposit.
Metro Bank provides a specialised facility, called the Money Management Account, that allows St. James’s Place clients to borrow against their existing eligible St. James’s Place investments. By using this facility, you could remain invested and therefore benefit from any stock market growth while providing financial assistance to your relative at the same time. By using the Money Management Account facility, you do not need to encash any investments, or incur potential tax charges.
Is gifting the best option for me?
Gifting a deposit using cash or by borrowing against your investments is the simplest solution that will not adversely impact your own financial plans.
However, gifting means you immediately lose control of the gifted assets, and it is also important to consider any Inheritance Tax implications and other terms and conditions would apply.
If you wish to retain control over your assets but still help your relative, your Financial Adviser at Four Wealth Management can explain the St. James’s Place Intergenerational Mortgage Range to you.
Book a no-obligation meeting
You can book a no-obligation meeting with a Financial Adviser to discuss which option is best for you to help your family onto the housing ladder. This can be a telephone meeting or face-to-face. To book, please contact us on 0117 973 0500.
The home on which the mortgage is secured may be repossessed if the mortgage borrower(s) does not keep up repayments on the mortgage.
