Security Through Savings - A Flexible Pathway to Homeownership
Empower Your Child to to Buy a Home Through Collaborative Financial Solutions
In the journey of homeownership, the “Security Through Savings” emerges as a beacon of flexibility and innovation. It’s a solution tailored for families seeking alternative ways to support their young buyers without leveraging property equity.
Understanding ‘Security Through Savings’
A novel approach that enables parents or family members to offer security as a deposit in a savings account for a young buyer’s mortgage by depositing a specified percentage of the purchase price with the lender. This provides lenders with the security required for a mortgage while offering families an option that doesn’t involve their property.
The Beauty of This Solution
Financial Flexibility
Without tying up property, families can pivot their financial strategies as needed, ensuring fluidity in their financial planning.
Immediate Support
Families can instantly bolster the mortgage application of young buyers, facilitating a smoother approval process.
Earned Interest
The funds remain in a savings account, which means there is potential to earn interest, turning the support into a dual-benefit move.
Peace of Mind
Parents can rest easy knowing they are supporting their child’s homeownership dreams without any charge on their property.
Simplified Exit Strategy
Once conditions are met, the savings can often be easily released, providing a straightforward end to the guarantee.
Five Year Commitment
The period of support through a deposit is usually during the five year fixed rate period of the mortgage.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH THE MORTGAGE PAYMENTS
NOT ALL BUY TO LET MORTGAGES ARE REGULATED
How Does It Work?
Commitment to Savings
A family member deposits a specified percentage (e.g. 20%) of the property’s value into a savings account. This acts as a security guarantee for the mortgage.
Loan Approval
The presence of this deposit/guarantee offers lenders the assurance they need, potentially allowing young buyers to access favourable mortgage terms or even higher Loan-to-Value ratios.
Journey to Independence
Over time, as the young buyer establishes a solid repayment history and builds equity in their home, the need for the guarantee might reduce, allowing for the release of the savings.
The “Security Through Savings” model stands out as an embodiment of adaptability and shared family aspirations. In an era of diverse financial solutions, this approach ensures that young buyers have multiple pathways to plant roots and create their own space.
The Intrigued by the potential of ‘Security Through Savings’? Reach out to us to embark on a harmonious homeownership journey.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH THE MORTGAGE PAYMENTS
NOT ALL BUY TO LET MORTGAGES ARE REGULATED
At Whimsters, we understand the significance of this moment, and we’re here to guide you through every detail of this important decision.
Are you excited about helping your child take their first step towards owning a home?
Whimsters Mortgages Ltd is registered at Companies House (4184767) and under the Data Protection Act 1998 (ZA535878) and is authorised and regulated by the Financial Conduct Authority (1013315) as an Appointed Representative of TMG Direct Ltd which is authorised and regulated by the Financial Conduct Authority (786245) and registered under the Data Protection Act 1998 No: ZA178200.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.