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Practical ways families can lend a hand to first-time buyers on their home journey
Buying your first home is exciting, but it can also feel like climbing a mountain in flip-flops. With rising house prices and stricter mortgage rules, many first-time buyers find it tough to go it alone. The good news? Family can often give you the helping hand you need to take that all-important first step onto the property ladder.
So, if you’re dreaming of keys in your hand but worrying about the numbers, here are some practical and family-friendly ways relatives can support your journey.
1. Gifts that make a big difference
One of the most common ways parents or grandparents help is by gifting money towards a deposit. Even a few thousand pounds can tip the scales in your favour, especially if it helps you hit that magic 10% or 20% deposit mark. Mortgage lenders usually ask for a signed letter confirming it’s a gift, not a loan, so be prepared for that paperwork.
2. The Bank of Mum and Dad – with interest or without
Some families prefer to lend rather than gift. In this case, it’s smart to agree on clear terms in writing—whether repayments are expected, if interest will be added, and what happens if circumstances change. Treat it like a mini family contract to avoid misunderstandings later.
3. Acting as a guarantor
Parents can also act as guarantors, meaning they promise to cover the mortgage if you can’t keep up with repayments. This option gives lenders extra confidence and could help you secure a bigger loan. It’s a serious commitment though, so both sides should fully understand the risks before diving in.
4. Joint ownership
Some families choose to buy a property together, with both names on the mortgage. This route can make the process smoother, but it also means sharing responsibility. Think carefully about how the ownership is divided, who will live in the property, and how it might be sold in the future.
5. Equity release from parents’ property
If your parents already own a home, they may be able to release some of its value to help you. While this can be a game-changer, it’s not a decision to rush. Professional advice is essential, as it could affect their long-term finances.
6. More than just money
Support doesn’t always have to mean cash. Family can also help by letting you live rent-free while you save, by sharing their home-buying wisdom, or even by helping with DIY once you’ve got the keys. These contributions can be just as valuable as financial help.
A step worth sharing
Buying your first home is rarely a solo mission. With family support—whether financial, emotional, or practical—you’ll find the climb to homeownership a little less steep. The key is open communication: discuss what feels fair, write down agreements, and celebrate the milestone together when you get there.
