Mortgage for Parents

Mortgage for Parents - are simply mortgages aimed at parents who are looking to help their children onto the property ladder. Capital  Fortune can arrange family mortgages to assist both the parent and the child. Mortgages for parents can allow the parent to help with obtaining the mortgage loan by utilizing their parental income to purchase the property jointly or simply use their own income to guarantee the mortgage loan.

In order to undertake a parental mortgage the parent will require sufficient monthly income to satisfy the mortgage lender that coupled with the child’s income, the mortgage is both suitable and affordable. The lender will look at both salaries to ensure the mortgage is affordable for both parties. In some circumstances, when the child is at college, University or has limited income, Capital  Fortune can still arrange the loan for both applicants.  The parental income will however, need to be sufficient to cover the new mortgage loan.

A number of lenders will offer a guarantor mortgage allowing the parent to guarantee any shortfall in the mortgage payments. In the UK, mortgages for parents and guarantor mortgages are becoming more common as the prices of property have risen and the rate of wage inflation has not followed suit. In contrast, in Japan for example, parent mortgages are the norm, with often three generations of families, including children, parents and grandparents all being party to the guarantor mortgage.

Parent mortgages can provide much needed help to first time buyers and those on a modest income as if the combined income is sufficient, it will enable a mortgage borrower to take out a mortgage they would not be able to do otherwise.

In utilizing the good will of a parent, the parent will need to be clear that whilst the buyer is the home owner, both applicants are jointly and severally liable for the whole of the mortgage debt and this is a big commitment for someone entering into this form of arrangement.

All Parent Mortgages can be dealt with over the telephone or in certain circumstances we may be able to visit at home or work. We will strive to take the difficulty and time element out of the parental mortgage application.

We will obtain all the necessary documentation from you after our first discussion and will avoid cascading you with a range of further information during the internet mortgage application. We will contact you via email, text message or mobile telephone at convenient times agreed by you.

Once the parent mortgage application has completed, your mortgage and mortgage protection needs will be constantly reviewed and in the event that new products become available, we will look to continually switch you to those products in order to increase the savings in a hassle free manner.

For more information on our mortgages for parents, call us today on  0845 3 630 430 or Enquire Online.