Mortgage Calculator

It is standard practice for parents to help their adult children out in the early years of their adulthood. From letting them live at home rent free while they start out in their career, to paying off debts for them should they get into financial difficulty, parents are paying out thousands of pounds yearly to keep their children afloat. Once their children grow up, they will have to do the same for their children and the circle continues, but should you as a parent go as far as to pay for your child’s first mortgage?

If your own finances are secure, you own you own home outright and have a hefty amount of savings you might want to think about buying a home for your child. However, there are many other ways you can help out which will still mean your child has to stand on their own feet but with a safety barrier should things go wrong.

If you stand as guarantor as part of a guarantor mortgage your child will be able to borrow a lot more than if they were applying for a mortgage on their own. It also gives some security to both the bank and your child as should they be unable to make a repayment on their mortgage you have essentially agreed to cover the expense until they are back on their feet. Some mortgages will also allow you to put some money in on a deposit to allow your child to get a much bigger property, or higher mortgage.

Another way to help out is to get involved in an offset mortgage with your child, offsetting your own savings against their mortgage to allow them to pay off the debt far more quickly. You can see just how much they will save from you sacrificing the interest on your savings by running the figures through an offset mortgage calculator. You can find a good mortgage calculator UK by looking on one of many comparison websites for a good deal, comparing the savings you can make on a free mortgage calculator and then instantly getting a list of brokers willing to lend under these circumstances.

Either way, offering to help out with your child’s mortgage is a big step to take and should be thought through and discussed with your child thoroughly. They will need to promise to keep up their end of the bargain just as you keep up yours but in the long run it can be a very helpful way of making sure your child is financially fixed up for the future – and will not have to make any more withdrawals from the bank of Mum and Dad!

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