The journey to owning that first home can be quite the uphill climb, with soaring house prices and sky-high rents. But a ‘gifted deposit’ funded from an Equity Release Lifetime Mortgage plan is already opening doors for many first-time buyers:
The first time buyer challenge
The climb to the property ladder is steeper than ever, with many only able to reach the first rung in their mid-thirties due to rising house prices and rental costs.
The role of later life lending
A strong desire for homeownership persists among the young, and parents and grandparents are stepping up, with ‘bank of family’ contributions soaring.
A helping hand from home
Equity Release, specifically Lifetime Mortgages, offers over-55s a way to make their dream of helping the next generation without downsizing or selling, paving the way for first-time buyers to secure that all-important deposit.
Five gifted deposit advantages with Equity Release
- Escape the rent race – While renting has its perks, the stability and freedom of owning a home, not to mention the chance to build equity, is still the goal of many young people and families.
- Better mortgage rates – A heftier deposit not only unlocks a wider choice of mortgages but also snags those more attractive rates, leading to significant savings over time.
- The ‘fixer-upper’ feat – A gifted deposit can empower first-timers to consider a ‘project home’, expanding their horizons and potential for a great deal. A “gifted deposit” doesn’t all have to be used for a deposit, money can be kept back to make the changes to a house and making it a home.
- Future-proofing home choices – Instead of the first time buyer going for a starter flat, a financial boost via a Lifetime Mortgage can help buyers leap straight to a family-friendly home.
- The early bird inheritance – Why wait until their sixties for an inheritance? An early boost via a Lifetime Mortgage can make a world of difference. Many people who receive an inheritance in later life say that having it earlier would have been when they needed it most.
The smart path forward
Lifetime Mortgages now come with safeguards like the ‘no negative equity guarantee’, ensuring borrowers never owe more than the house’s worth.
Flexible repayment options also mean controlling the final loan amount is in your hands.
These five points highlight how Equity Release can help the younger generation step onto the property ladder, gifting them the security and joy of their own home.
