It is getting easier for parents to help their children on to the housing ladder with a number of schemes that don't involve having to hand over vast sums for a deposit. But read the small print carefully.
The latest, Barclays Family Affordability Plan, enables parent and child to pool their resources to secure a larger mortgage to buy a first place, or trade up to a bigger property.
Other schemes use the equity in mum and dad's property to secure a higher loan-to-value than would otherwise be available, or require parents to put money into a savings account which can be set against the loan in case things go wrong.But some of these deals aren't for the faint-hearted, and people need to be very clear about what they are signing up to. The simplest, and most popular, way for parents to help their children, is to contribute towards a deposit. However, many parents don't have that sort of cash – but will have quite a lot of equity in their property.
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