Horsham is a popular location and as a result scores highly in the property price stakes. That said there are many ‘would be’ homebuyers with an appetite more expansive than their budget and this can be a deal breaker if income and deposits do not meet lender criteria. This is where parental support can help.
The traditional route has been through a parental guarantee, so parents guarantee the full amount lent to the siblings with the lender. Although lenders no longer favour this so much on a stand alone basis. Often a lender will prefer a parent to actually join in using their income to support affordability until such time as the original borrowers income has grown sufficiently to assume full responsibility.
Alternatively, the parents may gift the siblings the deposit toward the purchase of the new property. The parents must confirm that there are no monthly repayments, it is a non repayable gift and that they will have no interest in the new purchase.
Finally, a lender may sometimes accept a charge taken on the equity of a parental property thus alleviating the need for such a large deposit.
It may well be that a hybrid of all three may work too.
Another potential stumbling block may be age with some of the high street lenders still working off a retirement age of 65. So what about the growing population of people working into their 70’s and further? Well there are options and not all based on Equity Release although there are hybrid options are available to cater for most needs. Many will lend long in to later years, but these will be specialist lenders and not high street names. In the current climate this is not an issue and you should not be shy of dealing with a non-household name. Some of these are small regional building societies who have been established over 100 years!
As with any mortgage type you need to ensure that you take proper and in-depth advice before you commit. Who knows, that dream property in the Horsham area may well be available to you.