Helping out with a deposit for a first home can make all the difference to a younger person. Discuss any gift openly with them in advance so you can make sure you are giving them money when they need it most.
If you’re planning a deposit gift for a younger relative who’s buying a home with a new partner, it’s easy to feel nervous about handing over money to someone you don’t know well. To give you peace of mind, you can suggest that a Deed of Trust is created to protect your family’s share in the purchase. This means that if the relationship ends, you can make sure your money stays with you or your loved one. If you’re still feeling concerned, seek legal advice.
Alternatively, you could offer a loan but, before you commit, check first that a loaned deposit is acceptable to the mortgage provider.
Another way of helping a younger relative onto the property ladder is with a Barclays Family Springboard Mortgage. This lets you provide a deposit to help them get a mortgage to buy a home. You’ll get your money back after five years, with interest, as long as the homeowner keeps up their mortgage payments.