We often discuss the Bank of Mum and Dad as it’s very valuable in terms of the First Time Buyer market. Last year, the Bank of Mum and Dad played a significant part in the £6.5 billion loaned by family members to young people that needed help to get onto the property ladder. * And this figure is continuing to grow.
As First Time Buyers increasingly look to their parents for financial support or backing in order to make that first purchase, here at Mortgage Search Go we often deliberate on the role of parents and the increasingly ongoing financial support that their children need to get a start in life, or in property. Whilst it’s something that every parent is no doubt happy to do – we can’t help but wonder … when will parents get a break?
Well, we think we’ve found it for them – in the shape of a tax break! Specialist lenders offer Joint Borrower Sole Proprietor (JBSP) mortgages which enables parents to join in the mortgage with their children, without their name actually appearing on the title deeds of the property.
And as a result, because their name doesn’t appear on the title deeds, they avoid having to pay a 3% Stamp Duty tax that would usually be levied on a second property.
There are very few lenders that offer a JBSP mortgage, however as a whole-of-market provider, Mortgage Search Go is able to source mortgages just like this for First Time Buyers that don’t quite meet the stringent criteria often set by well-known high street lenders. Perhaps it’s time to give the Bank of Mum and Dad that little (tax) break it deserves!
Please note: Your home may be repossessed if you do not keep up with repayments on your mortgage.