A recent report has highlighted that Britain’s much loved institution the ‘BoMaD’ has unofficially become the UK’s 9th largest lender in the UK Housing market.
Did you know that over half of under 35’s get help from friends and family when getting onto the property ladder and almost 80% of the money they hand out goes to people under the age of 30. If you are considering asking your parents for help take a look at our ‘Parents Invest Scheme’ which allows them to make money whilst getting you onto the property ladder.
In 2017 the BoMaD looks set to offer £6.7 billion of funds to homebuyers, and their generosity will provide deposits for nearly 300,000 mortgages.
How can Gleeson help?
It’s a win win situation. Gleeson specialises in selling homes at prices which are affordable even for first time buyers, this leads to smaller deposit amounts and mortgage repayments for buyers generally being cheaper than renting.
Gleeson can also help the BoMaD through the Parents Invest scheme which is designed to not only get first time buyers on the property ladder but also benefit the ‘BoMaD’ contributing towards the deposit.
What’s in it for the First Time Buyer?
The larger your deposit the better mortgage rate you can get, which in turn will lower your monthly mortgage repayments, saving you money.
What’s in it for Parents?
Through the scheme your parents can contribute a deposit of up to 20% of the purchase price. When you move in, Gleeson will pay them the equivalent of 5% for 5 years on their investment in your home. With interest rates low at the moment, this percentage beats the average savings account rates meaning they will make more money on this scheme than keeping it in their bank earning interest.
A Great Return on Investment
At the moment, 57% of parents surveyed gave their share as a free gift like an early inheritance. 18.3% of parents choose to lend the money at no interest and 4.8% a combination or other form of help. The Parents Invest scheme helps you kick start your property ownership, keep money within the family, and also rewards your parents for their contribution.