Many first-time buyers need family support to get on the property ladder. There are several ways parents can help — from gifting a deposit to supporting a mortgage application directly.

The most common way to help. Key points:

• Most lenders accept gifted deposits from family
• A gifted deposit letter is usually required
• The gifter confirms no repayment is expected

Lenders may ask for proof of the gift source.

A parent goes on the mortgage but NOT the property deeds.

• Helps boost affordability
• Child owns the property outright
• Parent has no ownership stake
• Available from several lenders

Often the most popular modern alternative to guarantor mortgages.

Parents place savings in a linked account as security:

• Savings are returned after a set period (often 3-5 years)
• Some schemes pay interest on the savings
• Child gets a mortgage without needing a large deposit

A lower-risk option for parents who want their money back.

Less common now, but still available from some lenders.

The guarantor agrees to cover payments if the borrower can't:

• Higher risk for the guarantor
• May affect the guarantor's borrowing capacity
• Legal advice is recommended

Some lenders allow parents to:

• Use equity in their own home as additional security
• Offset savings against the child's mortgage
• Provide a charge on their property

These can help children borrow more or access better rates.

First-time buyers also need funds for:

• Solicitor/conveyancing fees
• Survey costs
• Moving expenses
• Furniture and essentials

Helping with these costs can ease the financial pressure.

Parents should be aware of:

• Inheritance tax implications on large gifts
• Stamp duty if added to property deeds
• Impact on means-tested benefits
• Capital gains tax if investing in property

Independent legal and tax advice is recommended.

Consider:

• What happens if circumstances change?
• Should a declaration of trust be in place?
• How will the arrangement work long-term?

Open conversations and written agreements protect family relationships.

Encourage your child to:

• Build a good credit history early
• Save regularly (even small amounts help)
• Avoid unnecessary debt before applying
• Get an Agreement in Principle

The earlier they start, the stronger their application.

Every family's situation is different. CrowNEST Mortgages can explain all available options, assess affordability for both parties, recommend the most suitable route and handle the application process.