Helping you take the first step onto the property ladder with help from your family with a family affordability plan.

Barclays have introduced a new scheme called Helpful Start ™ is designed to help more buyers get onto the property ladder. The first part of the initiative is the Family Affordability Plan, which enables parents to help their children get on or to move up the property ladder through a joint mortgage without giving a lump sum away.

How does the Family Affordability Plan work?

It allows parents to help their children over the long term with mortgage affordability and commitments through a joint mortgage. Income from parents can be used, alongside the child’s own income, to calculate how much they can afford to borrow. If eligible, they can use the total income on the mortgage application.

If the mortgage is approved, all parties will be liable for the monthly payments. The parent(s) will appear on the mortgage but they won’t be co-owners of the property.

You will therefore be jointly and severally liable for all mortgage repayments and other outstanding sums due under the mortgage. You should not enter into such a plan without fully understanding the risks involved and, as such, we require that each “borrower non-proprietor” take independent legal and tax advice prior to committing (fees will apply).

What happens when the individual wants to go it alone?

When your client is ready to manage the mortgage on their own, we can remove their parents from the mortgage by remortgaging – as long as we’re sure they can afford the monthly repayments by themselves. This is subject to application and status (fees will apply).

Eligibility criteria

All parties must meet the affordability criteria

The plan is only available to residents of England and Wales

Parents must take independent legal and tax advice before proceeding with the mortgage.

For further information or a personal illustration, please call 01489 580020 or email info@parkgate.net to arrange an initial meeting and discuss your requirements.

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