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How to Help Your Child Buy Their First Home

20/11/25

How Can I Help My Child Buy Their First Home?

Buying a first home is a huge milestone, but for many young people today, it feels harder than ever. Rising house prices, the cost of living, and stricter lending rules can make saving for a deposit seem almost impossible. As a parent, you might be wondering what you can do to help your child take that first step onto the property ladder.

The good news is, there are practical ways you can support them without putting yourself at risk. Let’s look at some options and tips that work for families here in Lancashire, whether you’re in Preston, Penwortham, Southport or surrounding areas.

Start with a Conversation About Budget

Before anything else, sit down and talk about what your child can realistically afford. It’s easy to get carried away scrolling through property sites, but lenders will look at income, outgoings, and credit history. Mortgage Advice Hut can help you work out what’s achievable and explain the difference between a fixed rate mortgage and a variable rate mortgage.

Encourage your child to check their credit score and tidy up any issues. Simple things like paying bills on time and keeping credit card balances low can make a big difference when applying for a mortgage.

Help with the Deposit and Affordability

One of the biggest hurdles for first time buyers is saving a deposit. Most lenders want at least 5% of the property price, and more if possible. If you’re in a position to gift money, that’s often the simplest way to help. Lenders will usually ask for a letter confirming it’s a gift and not a loan.

If gifting isn’t an option, there are other ways to help:

Joint Borrower Sole Proprietor (JBSP) Mortgage

A JBSP mortgage lets you go on the mortgage but not the property deeds. This means you help boost affordability without becoming a legal owner. It’s popular with parents who want to help their child buy without paying extra stamp duty or affecting their own home ownership.

How it works:

  • Your income is added to your child’s when the lender calculates affordability.
  • You’re responsible for the mortgage payments if your child can’t pay.
  • You don’t own the property, so no stamp duty surcharge applies.

Pros:

  • Helps your child borrow more without giving away money.
  • Avoids stamp duty issues.

Cons:

  • You’re legally liable for the debt.
  • Could affect your ability to borrow in the future.

Springboard Mortgage

A Springboard mortgage is another way to help without gifting money. Instead, you place savings (usually 10% of the property price) into a linked account as security for your child’s mortgage. After a set period, usually five years, you get your money back with interest if your child keeps up repayments.

How it works:

  • Your savings act as a safety net for the lender.
  • Your child gets a 100% mortgage, so no deposit needed.
  • You can earn interest on your savings while helping them buy.

Pros:

  • You keep ownership of your money.
  • No need to gift or transfer funds permanently.

Cons:

  • Your savings are locked away for several years.
  • If your child defaults, your money could be used to cover losses.

Consider Government Schemes

There are several schemes designed to help first time buyers. The Lifetime ISA, for example, gives a 25% bonus on savings up to £4,000 a year. Shared Ownership and First Homes schemes can also make buying more affordable.

Mortgage Advice Hut know which lenders support these schemes and can guide you through the process. It’s worth exploring all the options before deciding what’s best for your family.

Protect Yourself Too

It’s natural to want to help, but don’t put your own financial security at risk. If you’re considering a JBSP mortgage, Springboard mortgage, or using your home as security, get advice first. One of our friendly mortgage brokers can talk you through the risks and make sure you’re protected.

Local Knowledge Matters

Every area has its quirks. House prices in Preston might differ from Penwortham, Leyland or Southport, and some lenders have postcode restrictions. Working with a local mortgage adviser means you’ll get advice tailored to the Lancashire market, not just generic guidance.

Summary

Helping your child onto the property ladder is possible with the right planning and advice. Start with a clear budget, explore deposit options like gifted deposits, JBSP mortgages, and Springboard mortgages, look at government schemes, and make sure repayments are affordable. Most importantly, speak to a trusted mortgage broker in Lancashire who understands the local market.

Ready to Chat?

If you’d like friendly, no-obligation advice, I’m here to help. Whether you’re in Preston, Penwortham, Leyland or Southport, we can guide you through the options and make the process as stress-free as possible. Get in touch today and let’s make that first home a reality.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR
MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.

Get a Quote.

Risk Warning This quote is for illustration purposes only and does not constitute a formal mortgage offer. The figures provided are based on current interest rates and available products at the time of this illustration and may vary depending on lender criteria, your personal circumstances, and market conditions at the time of application. Please be aware that all mortgage offers are subject to affordability assessments, credit checks, and a formal valuation of the property. Fees, terms, and conditions may apply. For a detailed, personalised offer, further discussions and a full application will be required. Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.