Putting a second Charge on a Property

Trouble with Bank of Mum and Father's Credits

It can take a decade with high rent levels, a large number of jobless alumni, high students' debt and low saving ratios before first-time purchasers can pay the high down payment for a house. Often a parent wants to give a child a gift, either to help him or her cut his or her discount for probate taxes or just to help with the mortgage," says Andrew Kidd, a Silverman Sherliker solicitor.

Mortgages don't like it when you tell them that a down payment is a credit. The reason for this is that the refunds are subtracted from your child's total expenses and thus the amount they can lend is reduced. In order to prevent this from happening, create a "declaration of confidence" that specifies exactly who holds what percentage of the property in the case of a property being sold.

Another benefit of a donation is if you are living seven years after the transfer of the cash, your kids will not have to endure any estate duty on the amount paid when you are dying. 25-year-old Catherine Davies and 24-year-old Jamie Askew buy their first house after Catherine's father George uses his life saving to help them on the property manager.

They used Lloyds' Lend A Hand schema, which meant that the banks put a fee on George's deposits so that Catherine could buy with just a 5 ?pc payment. You have deposited a £7,000 security and you will be paying a 4.9% interest on your loan. It would have taken forever to make a saving for a larger deposit," says Catherine.

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