Parental help a boost for first time buyers

With first time buyers increasingly priced out of the property market, it comes as no surprise that more and more young people are choosing to live with their parents. And whilst some parents can offer their children some form of help with buying a property, most struggle to cover the cost of the deposit, sometimes resorting to dipping into their retirement fund to help their children onto the property ladder.

Persimmon Homes South Midlands has teamed up with Mortgage Bureau, a Wolverhampton-based mortgage broker, in a bid to find a mortgage solution that can involve parental help without straining the family cashflow and has introduced 1start to buyers of its homes across the South Midlands.

1start is a joint mortgage that takes into account not only the buyer’s income but also the income of one parent, enhancing the borrowing capacity of first and second time buyers.

And, whilst guarantor mortgages are not a new invention, 1start offers a particularly favourable calculation on the joint income. It also gives both the child and the parent peace of mind borne out of mutual trust.

Alison Reading, sales director at Persimmon Homes South Midlands, comments: “With 1start our buyers can borrow up to 10 times their income and we are offering further help to buyers of selected properties by paying the five per cent deposit.

“To illustrate how this type of mortgage work, an applicant’s income of £20,000 combined with a parental income of £40,000 with an existing mortgage of £50,000 and no other credit commitments would qualify for a loan of over £200,000, opening up a range of new options to househunters.”

With 1start, parents can choose to contribute to their child’s monthly repayments and can request to be included on the mortgage deeds.

Further details of the incentive can be obtained from all Persimmon Homes developments in the region including Bromsgrove, Cheltenham, Cleobury Mortimer, Coventry, Gloucester, Leominster, Malvern, Redditch, Rugby, Stratford upon Avon, Warwick and Worcester.

Alternatively, log on to Persimmonhomes.com.